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Economic Optimism Plunges To 15-Month Low; 59% Say U.S. In Recession

Economic Optimism Plunges To 15-Month Low; 59% Say U.S. In Recession
By Ed Carson, Investor’s Business Daily
Posted 09:58 AM ET

With tax hikes and rising gasoline prices sapping consumers’ pocketbooks and politicians preaching sequester gloom and doom, the IBD/TIPP Economic Optimism Index plunged 5.1 points in March to 42.2, the lowest since December 2011.

The federal economic policies confidence gauge fell 11% to 35.5, also a 15-month low. The six-month outlook index cratered 18% to 38.8, the worst since October 2011. The personal financial outlook reading lost 4.4% to 52.2, though that’s still above the neutral 50 level separating optimism and pessimism.

January personal income tumbled 3.6%, the worst monthly drop in 20 years, in the wake of fiscal cliff tax hikes on payrolls and high earners. Gasoline prices climbed day after day. Stock prices have wobbled as Italy’s inconclusive election revived concerns about the eurozone and global economy. Meanwhile, President Obama has been campaigning across the country, warning that automatic spending cuts will have a disastrous impact on government services and the economy. The sequestration just took effect this month.

Small wonder the overall index’s 10.8% decline was the worst since August 2011. That’s when Standard & Poor’s downgraded U.S. sovereign debt during the debt ceiling fight. To end the standoff, the White House proposed the sequester, which Obama now derides as “dumb” cuts.

4 thoughts on “Economic Optimism Plunges To 15-Month Low; 59% Say U.S. In Recession

  1. Why not a picture of our congressional leaders also that seem to be inept.

  2. Perhaps because our condition is a direct result of Obama’s failure to understand what drives the economy and how his agenda has strangled economic growth…

    BTW, personal income hasn’t dropped to its lowest level in 20 years for public workers. Their income is at an all-time high. If you pull out public workers’ income, the personal income rate is much lower.

  3. The president does not pass legislation,place blame on the lazy congress from both sides of the aisle.

  4. The president “creates law” via executive orders and departmental regulations.

    He rules by fiat, coopting the power of congress, to the glee of the media and his other other enablers.

    But you already know all of this…

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