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Consumer confidence is supposed to be a leading indicator of the economy’s direction. Right now, though, it looks more like a lagging indicator, with consumer-confidence indices staying flat even as many other bits of data show incipient signs of a recovery. What gives? Economists point to the weakness of the labor market as a restraint on consumer confidence, as well they should. But it also seems likely that a recent run-up in gasoline prices has dampened consumers’ spirits.
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