Mark Vitner Consumer Quotations

We're shifting from an economy driven by consumer spending and home building to one driven by business investment.

We expect a big jump in consumer confidence now that the effects of Katrina and higher gas prices are further behind us. Higher confidence will lead to a better-than-expected holiday shopping season as well.

The mystery is why this prolonged profit slump has not led to a larger cutback in consumer spending, ... The longer the profit drought persists the greater the risk is that this recession will broaden and deepen.

Coming on the heels of stronger reports on retail sales and durable-goods orders, as well as a sharp drop in first-time claims for unemployment, this ... drop in consumer confidence was a cold slap in the face to all of those economists, including ourselves, that are looking for a second-half rebound.

The relief money is coming in much faster than it has for any other natural disaster that I can remember. That should help minimize some of the hit on consumer spending,

The No. 1 reason new orders and production are falling is that inventories have risen in recent months as consumer spending has slowed, ... Such a buildup was acceptable when economic growth was accelerating. Now that growth is cooling off, businesses will need to curb stockpiles.

The two-steps-forward, one-step-back sequence is not at all uncommon for the Consumer Confidence Index during the early stages of an economic recovery.

I don't know if the gas prices and interest rates will knock consumer confidence down in coming months, ... I think they're more likely to hold it where it is now, which is good, but not great.