White House Scandal Hurts Ohio Consumer Confidence

WHITE HOUSE SEX SCANDAL HURTS CONSUMER CONFIDENCE OF OHIOANS

COLUMBUS -- The recent White House sex scandal caused a 
downturn in the confidence of Ohio consumers, according to 
economists at The Ohio State University.

The Ohio Consumer Confidence Index dropped 2.5 percent in 
the days after the presidential intern controversy erupted on 
Jan. 20.  However, confidence appeared to rebound somewhat after 
President Clinton's State of the Union message on Jan. 27, 
although it did not recover to pre-controversy levels.

"The results showed that even the threat of protracted legal 
problems for the president is enough to dampen confidence in 
consumers," said Lucia Dunn, professor of economics at Ohio 
State.

On Jan. 20, news broke that President Clinton may have had 
an affair with White House intern Monica Lewinsky.  Before that 
date, the Ohio Consumer Confidence Index stood at 102.1.  In the 
days following, it dropped to 99.5.  Following the State of the 
Union address, it rose again to 101.8.

The index measures consumer assessments of their current 
financial condition and their expectations of how the economy 
will perform in the future.  Scores above 100 indicate consumers 
are very positive about the economy.  The index is compiled 
monthly by Ohio State's Survey Research Unit.

Overall, the final January score of 100.4 was up from the 
December level of 96.4.

"These numbers suggest that Ohio consumers have recovered 
from the unsettling effects of turmoil in Asian markets and have 
learned to live with the still-gyrating American stock market," 
Dunn said.

Confidence among Ohioans has risen steadily since the 
initial shock brought about by difficulties in Asian markets, 
according to Dunn.  However, the levels of the Ohio index still 
trail the national numbers compiled by the University of 
Michigan's Index of Consumer Sentiment.  "This illustrates the 
more conservative attitude among consumers in Ohio," she said.

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Contact:  Lucia Dunn, (614) 292-8071
Written by Jeff Grabmeier, (614) 292-8457