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Confidence Measures Show It’s the Politics

Bloomberg (09/10/13) Michelle Jamrisko

Consumer sentiment has become a less reliable gauge of the spending that supports growth, because U.S. consumers’ economic outlook increasingly is influenced by politics, according to data from the Bloomberg Comfort Index. Furthermore, automobile sales last month were the best they’ve been since November 2007, but two consumer confidence surveys showed declines in confidence, indicating that greater pessimism doesn’t necessarily result in reduced spending.