Confidence Crisis? What Confidence Crisis?

Chart of the Week for July 26-August 1, 2002

Is there a gap between what consumers say and what they actually do? It appears so according to the latest reports on consumer confidence and new home sales. The June confidence report from the Conference Board indicates consumers are less confident about both present conditions and the future, yet at the same time they bought a record number of new homes. This inconsistency reminds us of the old saying “Actions speak louder than words.”

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