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January 2009 Consumer Confidence

Washington State Consumer Confidence

The US Consumer Confidence Index slid to its lowest point in January, 2009, since reporting began in 1967 according to the Conference Board, a New York-based research group.  The Consumer Confidence Index expresses the level of optimism in the economy consumers possess, the idea being the higher the level of optimism, the greater the likelihood consumers will spend their money.  In January, 2008, the index stood at 89.7 while in December it plunged to a revised 38.6 representing a decline of over 50 points.  The decline has continued in January, 2009, with the index falling to 37.7, a new all-time low.  Clearly, consumers believe the economy is severely broken and have no expectation for improvement in the foreseeable future.   Hebert Research’s assessment shows that Washington State consumers are more optimistic than the nation as a whole—48.4 for Washington residents vs. 37.7 nationally—although, overall, optimism among Washington consumers remains extremely low.

Consumer Confidence in Washington State Varies by Political Affiliation and Education

Our research shows that political affiliation among consumers in Washington State is associated with the consumer’s level of economic optimism.  As may be expected, Democrats are more confident about the future economy in the hands of the Obama administration than are Republicans  

Confidence in the economy is also affected by educational level.  Consumers with more education show higher confidence in the economy than those with less education