Hurricane Katrina, coupled with soaring gasoline prices and a less optimistic job outlook, has ... created a degree of uncertainty and concern about the short-term future.
We've noticed that with the 24-7 electronic-technological boom over the last several years, things have really accelerated. The pace of change, the learning curve on the job -- we're seeing some of that stress spill over and have a negative effect on employee attitudes.
Historically, shocks have had a short-term impact on consumer confidence, especially on consumers' expectations.
The improvement in consumers' mood suggests that business activity and labor market activity will continue to pick up over the next several months.
One of the good perks is vacation policies.
While the economy has not turned around yet, the worst may well be over. The upturn in confidence is being driven by growing confidence about the business outlook and job prospects. Consumer expectations for the future are now higher than they have been in more than a year.
As rebuilding efforts take hold and job growth gains momentum, consumers' confidence should rebound and return to more positive levels by year-end or early 2006.
Especially in this tight labor market.
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