The U.S. economy isn't officially in recession, but a lot of Ohioans are feeling some depression about the future. The index, compiled for The Dispatch by Ohio State University, has been on a downward spiral since October and hit a record low of 89.2 last month. Economists consider consumer confidence a leading economic indicator in that it can help predict the direction the economy is heading.
Consumer spending accounts for three-fourths of all economic activity in the United States.
The decline in confidence for Ohioans mirrored drops in the national consumer confidence index and U.S. stock markets. The Dow Jones industrial average is down 4.6 percent this year, with the Nasdaq stock market off 18.4 percent. Consumer confidence is tied very closely to the stock market, particularly the fortunes of the Nasdaq,'' said Jim Coons, chief economist for Huntington Bancshares. One in four Ohioans said they were worse off last month than in February 2000. And 41.8 percent of Ohioans expect national business conditions to be worse in a year than they are now.