Consumer confidence steady despite $3 gas
By Rex Nutting, MarketWatch
Last Update: 5:14 PM ET Jul 11, 2006
WASHINGTON (MarketWatch) -- U.S. consumer attitudes were little changed in the last week despite rising gasoline prices, according to a weekly index released Tuesday by ABC News and the Washington Post. The ABC/Post consumer comfort index dropped to negative 10 from negative 9 the week before.
The index has been near its long-term average of negative 9 for the past three weeks. The index dipped as low as negative 19 in mid-May, when gasoline prices averaged $2.99 a gallon. Last week, pump prices averaged $3.02, the second highest ever.
"Further price hikes could well take a toll: Confidence has declined, often sharply, in the face of previous gas price spikes," said Tanveer Ali, an analyst for ABC.
ABC said the four-week average of gasoline prices is "significantly" correlated with its consumer comfort index. Gasoline has averaged $2.96 a gallon over the past four weeks, a penny below the all-time record set in May.
In the latest week, 40% of respondents said the national economy was good or excellent, up from 39%. Fifty-nine percent said their own personal finances were good or excellent, unchanged. The buying climate worsened, with 36% saying it's a good or excellent time to buy, down from 39%.
All three subindexes are close to their long-term averages.
