WASHINGTON (MNI) – The following is the text of the August IBD/TIPP
Consumer Optimism report released Tuesday:

The IBD/TIPP Economic Optimism Index decreased 1.1 points, or 2.5%,
in August posting 43.6 vs. 44.7 in July. This month’s reading puts the
index at its 12-month low. The index is 3.8 points below its 12-month
average of 47.4 and 0.8 points below its reading of 44.4 in December
2007 when the economy entered into the recession, and 7.2 points below
its all-time average of 50.8.

Note: Index readings above 50 indicate optimism; below 50 indicate
pessimism.

The IBD/TIPP Economic Optimism Index has a good track record of
foreshadowing the confidence indicators put out later each month by the
University of Michigan and The Conference Board. IBD/TIPP conducted the
national poll of 837 adults from August 2 to August 8. The margin of
error is +/-3.5 percentage points.

The IBD/TIPP Economic Optimism Index has three key components, two
of which declined in August.

– The Six-Month Economic Outlook, a measure of how consumers feel
about the economy’s prospects in the next six months, improved 2.3
points, or 5.4%, to 45.1. When compared to December 2007, the index
shows a gain of 13.0 points.

– The Personal Financial Outlook, a measure of how Americans feel
about their own finances in the next six months, declined 1.7 points, or
3.3%, to reach 49.2.

– Confidence in Federal Economic Policies, a proprietary IBD/TIPP
measure of views on how government economic policies are working,
declined 3.9 points, or 9.6%, to reach 36.6.

“The erosion of public’s confidence in government’s economic
policies is behind the decline in optimism this month.”” said Raghavan
Mayur, president of TIPP, a unit of TechnoMetrica Market Intelligence,
IBD’s polling partner.

“The failure of government programs to bring about a promised
turnaround in the job market seems to have soured many Americans on
current stimulus and bailout efforts,” added Terry Jones, associate
editor of Investor’s Business Daily.

The Breakdown

This month, only two of the 21 demographic groups that IBD/TIPP
tracks were above 50 on the Economic Optimism Index. The highest index
scores were for Democrats (58.1) and Black/Hispanic Americans (54.4).

Fifteen groups declined on the index, six groups advanced and one
remained unchanged.

On the Economic Outlook component, three of the groups IBD/TIPP
tracks scored in optimistic territory. The highest index scores were
for 18 to 24 year olds (52.3), Democrats (63.5), and Black/Hispanic
Americans (58.8).

On the Personal Financial component, five of the groups IBD/TIPP
tracks scored in optimistic territory. The current reading of 49.2 is
twelve month low for the component. Four groups advanced on the index
while seventeen groups declined.

On the Federal Policies component, only one of the 21 demographic
groups tracked was above 50. The current month reading of 36.6 is the
component’s one year low. Four groups advanced on the index, while
seventeen groups declined.

** Market News International Washington Bureau: 202-371-2121 **

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