RSSConfidence jump will boost construction demand
 | Seed Newsvine |
Consumer confidence indexes plunged 50% from last September through June, closely tracking rising gasoline prices. Respondents to the latest survey knew that crude oil prices were down $10-12/bbl. and gasoline prices had started to fall after being stuck near $4.10/gal. for six weeks. Since the survey, oil has dropped another $10-12 and gasoline prices nearly $0.10. The next confidence reading is likely to show another gain.
The depressed confidence is primarily responsible for by far the lowest auto and home sales in more than a decade. Both are far below the usual tracking with income and monthly payments. No quick upturn in sales is likely. Consumers still have a lot to worry about. But the end to the decline with some gradual improvement is now very likely as we had assumed in our economic and construction forecasts.
Hotel construction will be the earliest and largest boost from improved confidence through the positive impact on travel from both cheaper fuel and less need to hoard income against feared income losses ahead.
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