Americans Close the Checkbook ; in Another Sign of a Deteriorating Economy, Consumer Confidence Falls Sharply - Again

By Ron Scherer writer of The Christian Science Monitor | The Christian Science Monitor, April 25, 2001 | Go to article overview

Americans Close the Checkbook ; in Another Sign of a Deteriorating Economy, Consumer Confidence Falls Sharply - Again


Ron Scherer writer of The Christian Science Monitor, The Christian Science Monitor


The Grochocinskis of North Carolina are further evidence that the US economy is in trouble. The couple went shopping for furniture last weekend, but after wandering through showrooms, they decided not to buy a new entertainment center.

"Now, I'm thinking of making it myself - anything to save a big penny here and there," says Paul Grochocinski, who lives in the Raleigh-Durham area and works for a high-tech company that's laying off thousands of workers.

Like the Grochocinskis, many Americans are starting to curb spending on big-ticket items in a further sign that consumer confidence - one of the key drivers of the US economy - is falling.

Many are brown-bagging it with baloney-and-cheese sandwiches. Others are laying off the credit cards. Most are definitely not pulling out the checkbook for expensive vacations or faux 19th- century armoires. Instead, they want to see what's going to happen with their jobs and the economy for the rest of the year.

The depth of the trend was underscored yesterday when the Conference Board, a business-research group, reported that its survey of consumer confidence slid sharply. The latest report shows that individuals now see their current situation as weaker. In past surveys, consumers only expected their prospects to decline. If this trend continues, "It is foretelling of economic hardship," says Lynn Franco, director of the Board's Consumer Research Center. But, she adds, "We're still not at levels we see prior to a recession."

How people perceive their future is critical to the well-being of the economy, since two-thirds of the nation's gross domestic product is related to consumer spending. Any shift in consumer psychology can impact auto manufacturers, airline companies, or, in the Grochocinskis' case, furniture production. Since mid-1997, confidence has been high, which has helped to buoy the nation's prospects.

The Conference Board report comes at a critical time for the economy. Over the past five months, consumers have been saying they're nervous about the future. Now, with layoffs spreading, people are beginning to feel the economy is worsening.

"What it could mean is that the consumer will be more cautious this spring than they were in the first quarter," says Stuart Hoffman, chief economist for the PNC Financial Services Group in Pittsburgh.

In fact, some economists believe the slide in consumer confidence may mean a slow economy for the rest of the year. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Americans Close the Checkbook ; in Another Sign of a Deteriorating Economy, Consumer Confidence Falls Sharply - Again
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.