Economy keeps Americans focused on budgeting

10.31.09
By Timothy Jones

Americans have focused increasingly on budgeting in recent months with help from a recession that has produced some of the tightest economic conditions in years.

One bright spot for the economy has been the stock market, but other important indicators remain dubious for the public. For example, the latest Consumer Confidence Index from the Conference Board unexpectedly fell in October to 47.7, down from 53.4 in September. This drop came despite expectations from economists that it would actually increase.

The Conference Board also found a slight increase in the number of people saying that business conditions are bad, as well as a corresponding decrease in those who believe conditions are favorable.

Elsewhere, the Labor Department reported this week that 530,000 people filed for first-time unemployment benefits last week. This was virtually unchanged from the 531,000 recorded the previous week, which at the time was seen as a disappointment.

Government statistics have shown consumers focused increasingly on savings as they work their way through the recession. One concern for the economy is that this newfound responsibility toward budgeting could actually undermine the pace of an economic recovery.

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The recession has brought greater awareness of careful budgeting practices.