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Confidence in economy wanes

Consumers still remain optimistic about the general state of the economy, but their confidence waned a bit in the middle of the current month based on Gallup's economic confidence index which dipped from January levels.

This Gallup index measures overall consumer confidence.  It runs on a scale that has ranges from -100 to 100.  Obviously the negative numbers suggest weaker consumer confidence overall. The number had reached an index score of -23 last week which was down from the score of -20 a week earlier.

Even with this dip in the number, the consumer confidence levels today are much better the last summer's when the index actually hit a low -54.  This was during the summer months of 2011.  One of the things that can help the consumer confidence even more is the HARP 2 Refinance program to be rolled out by the Obama Administration.

The recent deterioration in the employment market might be the reason for the small dip in consumer confidence this month. According to Gallup, U.S. unemployment is back up to 9% in February as opposed to the January unemployment rate of 8.3%.

In February 2011, the confidence levels were at -18.  We are still off from that number, but today's confidence level is comparable to January 2010 and to the first week of January 2008. It is also better than 2009 levels.

Overall, "Americans are far less discouraged about the economy today than they were throughout the second half of 2011, and their confidence continues to recover in 2012," Gallup said.

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