Consumer Confidence Pushes Higher, But For How Long?
It should be interesting to see how consumer confidence holds up now that the election is over and the mainstream media has done a complete pivot, focusing their laser-like attention on the “fiscal cliff”.
As shown in the lower graphic below from the latest Gallup data the other day, it’s been a one-sided affair since the Democratic Convention in early-September and if this year’s “fiscal cliff” debate turns into a crisis like last year’s debt ceiling debate, confidence could sink as fast as the stock market has in the last week.
While it’s no surprise that economic confidence amongst Republicans is little changed since the summer and the outlook amongst Democrats has risen steadily (along with President Obama’s bid for re-election), it’s worth noting that the mood of independents just hit a two month low.
The more important curve to watch above is probably the dark green one as the realization that nothing has really changed in Washington sinks in amongst the winners.