The Consumer Confidence Index data in September, 2009 fell to 53.1 from 54.5 in August.

You are probably asking, “So what’s the big deal? Only a 1.4 drop. And who even cares anything about the Consumer Confidence Index data?”

The big deal is:

1. The Consumer Confidence Index measures the confidence level the US consumers have in the future of the economy. If they don’t have much confidence, they are probably not going to spend much money.
2. The index had risen for several months in a row. Economic experts had expected a continued rise in confidence for the month of September. They had projected a 57.0 level – far above the actual number.
3. Even more important, the lower number for September indicates that US consumers are probably still having a difficult time dealing with the unprecedented shock that occurred to their wealth over the last several months.

This is why some of us have a very cautious outlook on the long term economic recovery.

The US consumer doesn’t appear to have the means or the desire to start spending. Without a rise in personal consumption expenditures, the economic recovery is in trouble over the long haul.

As we all know, consumers make up approximately 70% of our Gross Domestic Product through their spending on goods and services. They have suffered significant losses in the value of their homes and investments. They have gone deeply into debt over the years.

Consumers are in the process of paying down their debt. We are seeing an increase in the US savings rate. That means that the consumer is saving more and spending less.

The consumers are taking prudent action. By saving and paying down their debt, they are improving their personal balance sheets. As a result, the US economy will be stronger in the long run. But lower personal consumption expenditures (a result of the lower Consumer Confidence Index data) will limit any attempted recovery.

The savings rate fell from around 10% in the 1980s to a negative rate last year. Personal debt as a percentage of disposable income went from 65% in the 1960s to 130% last year. These were both very negative trends.

While the US consumer is bringing down their debt load, the federal government has increased their debt to record levels.

What I’m saying here is that it will take many, many years to unwind this massive debt. As a result, I feel that personal consumption expenditures will be a drag on the economy for a long time.

What does this mean for you and me?

It means that corporate professionals should not get too excited about the current economic recovery. I just don’t think it will last. I hope I’m wrong about this.

This low level of personal consumption expenditures will result in very slow growth in our economy. Unemployment rates will remain at fairly high levels. We will not see a significant rise in home prices.

It wasn’t long ago that I was able to retire from my Chief Financial Officer position in corporate America. This was before the economic downturn began.

Fortunately, I had a job backup plan. I considered many income alternatives. I then decided on a professional internet marketing business career. This may not be the path you want to follow. But because the economy will probably remain sluggish for many years, I suggest you have some type of backup plan.

My job backup plan was to get internet marketing training. This approach allowed me to continue to work at my regular job.

When I found the right business, it wasn’t long before I was able to retire.

Getting the right internet marketing training was the key. You will not be able to succeed without it.

If you ever want to discuss your options to get out of corporate America, give me a call or send me an email. I would be happy to help you if I can.

Scott Hubbard has retired from 25 years as a Chief Financial Officer in corporate America.  He teaches corporate professionals and network marketers how to start a successful internet marketing business.  You can learn more about Scott by visiting his blog at http://YourGuideToRetirement.com.

You can reach him toll-free at 877-878-4036 or by email at Scott@ScottHubbard-Consulting.com.  His primary business, http://Your-Guide-To-Wealth.com, has provided the general guidance that individuals need to make good financial decisions in economic downturns as well as in expanding markets.