Consumer confidence plunging
POSTED: Wednesday, January 30, 2013 - 5:47pm
UPDATED: Thursday, January 31, 2013 - 9:31am
McAllen, TEXAS (KVEO NEWSCENTER 23) — Most of us have already noticed a difference in our paychecks, leaving us with less take home pay. Recent reports from the consumer confidence index shows consumer confidence is down since January to December making it the lowest drop since November 2011.
Steven Lovell is a UTPA Economic Lecturer and he says, "There's less money in people's pockets, they really didn't understand that the payroll termination deduction was going to end and that there would be an increase in the amount that the government was going to take."
That's one of the reasons why U.S. consumer confidence has plunged, putting things into perspective for workers earning $50,000 a year their take home pay will shrink this year by about $1,00 and mix that in with a higher than normal national unemployment rate, economists say it's a perfect recipe to slow consumers things down.
Although unemployment nationally is still a concern, here locally consumer confidence may be a bit stronger because of heavy shopping traffic which comes from Mexico. However, despite economical help from shoppers across the border locals too are feeling the financial sting when it comes to spending.
On the other hand, a new report shows that recent college graduates are making more money, which is a good thing especially for those entering the job market.