Tags: Consumer Reports | Cash-Strapped | Less | Confident | Recovery

Consumer Reports: Cash-Strapped Less Confident Over Recovery

Monday, 27 Jun 2011 12:16 PM

Cash-strapped Americans are less confident over the fate of the U.S. economic recovery than are the wealthy, a Consumer Reports survey shows.

Households that earn less than $50,000 have been extremely downbeat on the economy every month since the survey's April 2008 launch, USA Today reports.

While more affluent households have been less affected by the job market, low-income households have seen a net decline in jobs for 23 out of the past 24 months, according to the survey.

That's bad news for the U.S. economy, which is heavily dependent on consumer demand.

"We have a backlog of Americans who've been out of work for two years," says Ed Farrell, director of Consumer Reports National Research Center, the newspaper reports.

"It's going to take a strong surge in the economy to pull these people back in."

The United States has officially been out of the recession for about two years now but high unemployment rates, which rose to 9.1 percent in May from 9.0 percent in April, make it feel as if the economy has failed to recover.

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Fed Chair Ben Bernanke
(Getty Images photo)
"Consumer spending is growing very sluggishly," says Chris Christopher, a senior principal economist at IHS Global Insight in Lexington, Massachusetts, according to Bloomberg.

"The fall in gasoline prices is helping to a degree, but the employment situation in May, however, started deteriorating."

Federal Reserve Chairman Ben Bernanke has recognized the slow pace of recovery.

"The economic recovery appears to be proceeding at a moderate pace, though somewhat more slowly than the committee had expected," Bernanke said recently, referring to the Fed Open Market Committee, which sets interest rates, according to Bloomberg.

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Cash-strapped Americans are less confident over the fate of the U.S. economic recovery than are the wealthy, a Consumer Reports survey shows. Households that earn less than $50,000 have been extremely downbeat on the economy every month since the survey's April 2008...
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2011-16-27
Monday, 27 Jun 2011 12:16 PM
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