And the bad news keeps on coming . . .

Now US confidence plummets.

The dangers of the world economy slowing are increasing by the minute.

In the hour or so since I wrote this, the data from the Conference Board was published on consumer confidence in the United States. The index, which had improved slightly in July, plummeted in August. The index now stands at 44.5 (1985=100), down from 59.2 in July, which is its largest fall since the 23-point decline in October 2008, when the collapse of Lehman Brothers sent reverberations around the world.

The drop was well below the consensus forecast among economists who were polled, of 52.0. The Present Situation Index decreased to 33.3 from 35.7. The Expectations Index collapsed, falling to 51.9 from 74.9 last month. This is consistent with the Reuters/University of Michigan Consumer Confidence Index, which dropped this month to the lowest level since November 2008.

Says Lynn Franco, director of the Conference Board Consumer Research Centre:

Consumer confidence deteriorated sharply in August, as consumers grew significantly more pessimistic about the short-term outlook. The index is now at its lowest level in more than two years (April 2009, 40.8). A contributing factor may have been the debt ceiling discussions since the decline in confidence was well underway before the S&P downgrade. Consumers' assessment of current conditions, on the other hand, posted only a modest decline as employment conditions continue to suppress confidence.

Chris Williamson, chief economist at Markit has it right:

The survey data highlight how the increasingly downbeat news flow on both sides of the Atlantic in terms of stalling economic recoveries, debt worries and the lack of clarity on any course of remedial action from policymakers is causing consumers to retrench further. This is bad news not just for the US and Eurozone, but for the global economic recovery as a whole, as rising consumer spending in the developed world has an important role to play in driving worldwide economic growth. Expect to see growth forecasts revised down in the light of these new numbers.

Bad news on top of bad. I am still waiting for a response from George "Slasher" Osborne.

David Blanchflower is economics editor of the New Statesman and professor of economics at Dartmouth College, New Hampshire

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To stop Jeremy Corbyn, I am giving my second preference to Andy Burnham

The big question is whether Andy Burnham or Yvette Cooper will face Jeremy in the final round of this election.

Voting is now underway in the Labour leadership election. There can be no doubt that Jeremy Corbyn is the frontrunner, but the race isn't over yet.

I know from conversations across the country that many voters still haven't made up their mind.

Some are drawn to Jeremy's promises of a new Jerusalem and endless spending, but worried that these endless promises, with no credibility, will only serve to lose us the next general election.

Others are certain that a Jeremy victory is really a win for Cameron and Osborne, but don't know who is the best alternative to vote for.

I am supporting Liz Kendall and will give her my first preference. But polling data is brutally clear: the big question is whether Andy Burnham or Yvette Cooper will face Jeremy in the final round of this election.

Andy can win. He can draw together support from across the party, motivated by his history of loyalty to the Labour movement, his passionate appeal for unity in fighting the Tories, and the findings of every poll of the general public in this campaign that he is best placed candidate to win the next general election.

Yvette, in contrast, would lose to Jeremy Corbyn and lose heavily. Evidence from data collected by all the campaigns – except (apparently) Yvette's own – shows this. All publicly available polling shows the same. If Andy drops out of the race, a large part of the broad coalition he attracts will vote for Jeremy. If Yvette is knocked out, her support firmly swings behind Andy.

We will all have our views about the different candidates, but the real choice for our country is between a Labour government and the ongoing rightwing agenda of the Tories.

I am in politics to make a real difference to the lives of my constituents. We are all in the Labour movement to get behind the beliefs that unite all in our party.

In the crucial choice we are making right now, I have no doubt that a vote for Jeremy would be the wrong choice – throwing away the next election, and with it hope for the next decade.

A vote for Yvette gets the same result – her defeat by Jeremy, and Jeremy's defeat to Cameron and Osborne.

In the crucial choice between Yvette and Andy, Andy will get my second preference so we can have the best hope of keeping the fight for our party alive, and the best hope for the future of our country too.

Tom Blenkinsop is the Labour MP for Middlesbrough South and East Cleveland