Skip to main content

Study finds consumers still lacking confidence in the economy

Aug 31, 2010

A new analysis from Market Rates Insight (MRI) reveals that consumers are exhibiting one-third less (36 index points) confidence in the economy during the current downturn in deposit rates compare to the previous deposit-rate dip in January of 2004. In January of 2004, which was the previous downturn in deposit rates, the University of Michigan Consumer Sentiment Index (MCSI) stood at 103.8, and the national average rate for deposits was 1.88 percent. In July 2010, the MCIS stood at 67.8, and the national average rate for deposit hit a new record low of 0.99 percent. “The low level of consumer confidence indicates that this deposit-rate downturn is different” said Dan Geller, Ph.D. executive vice president at Market Rates Insight. “Some of the main differences in today’s economic indicators are a much higher unemployment rate, lower Fed funds rate and much slower economic growth, which means that we should not expect interest rates on deposits to go up any time soon.” The MCSI has a strong and significant linear relationship to the national average rate for deposits. Although MCSI is subjective in nature, it does provide a snapshot of how consumers feel about the economy, which impacts consumers’ spending and investments decisions. Click here to view a complete analysis of the study. For more information, visit www.marketratesinsight.com.
About the author
Published
Aug 31, 2010
Rocket's All-American Return To The Super Bowl

The company spends millions to remind Americans of "the meaning of home."

Feb 10, 2025
Connecting Through Culture And Storytelling

Developing a bond with clients at more than face value

Jan 31, 2025
L.O. To The Rescue

Saving the day, one loan at a time

Dec 16, 2024
A Pleasant Surprise For RCN Capital

Preparation and opportunity diverged into one during RCN Capital’s August 2024 record-breaking month.

Oct 23, 2024
Practice Makes Perfect In Public Speaking

The art of being debonair while being terrified

Oct 04, 2024
Wave Internet Leads Good-Bye

Lead generation experts discuss the dire implications of one-to-one consent

Oct 04, 2024