By Mark Huffman
ConsumerAffairs.com
December 16, 2009
If you follow the headlines, the economy finally appears to be improving. Unemployment dipped in November and retail sales are higher than most forecasters expected.
On Wall Street, stocks have regained much of the ground they lost in this year's terrifying sell-off. But on Main Street, the recovery may not yet have taken hold.
In fact, in a nationwide survey conducted by the American Consumer Institute Center for Citizen Research, 60 percent of consumers said that the economy is worse than it was a year ago. Only 22 percent think the economy is better than it was a year ago and 17 percent believe it is about the same.
It was an assessment shared, for the most part, among all income, race and age groups, as well as other demographic characteristics, including among Republicans and Democrats.
The survey results also show that consumer perceptions of a poor economy closely coincide with a drop-off in expected consumer spending during the holiday season. The survey found that 49 percent of consumers expect to spend less, 40 percent expect to spend about the same and only eight percent of consumers expect to spend more, compared to last year's survey.
Meanwhile, the personal finance Web site Bills.com analyzed its 2009 data from consumers and found that a large percentage have simply been overwhelmed by the impact of the recession.
Concerned about keeping homes, cars
"While questions posed to our experts overwhelmingly show that many Americans are facing dire economic consequences, our 'Bills IQ' results demonstrate a solid understanding of money issues," said Ethan Ewing, president of Bills.com. "It seems that while most Americans are comfortable with basic money and savings concepts, this last year saw them buffeted by forces beyond their control."
The company said the top five most frequently asked questions of 2009 included questions about debt consolidation, car repossession, loan modifications and refinancing and penalties for early withdrawals from retirement accounts.
When it comes to the state of the economy, even the Obama Administration appears conflicted. On Sunday, Larry Summers, a top White House economic advisor, told ABC's "This Week" program that the economy will start producing new jobs by spring and "everyone agrees the recession is over."
Well, not everyone. On NBC's "Meet the Press" Sunday another top administration economic advisor, Christina Romer, was asked if the recession were over.
"Of course not," she said.
