U.S. Consumer Confidence Falls From a Six-Year High

[Purveyor]

By Lorraine Woellert - Aug 16, 2013

Consumer confidence in the U.S. unexpectedly dropped in August from a six-year high as Americans faced rising interest rates.

The Thomson Reuters/University of Michigan preliminary index of consumer sentiment fell to 80 from 85.1 in July, which was the highest since July 2007. The median projection of 68 economists surveyed by Bloomberg called for little change at 85.2. The decline this month was the biggest since December.

Higher mortgage rates are threatening to crimp momentum in the housing market that’s contributed to the economic expansion. At the same time, job growth and increased personal wealth tied to stock portfolios and home values are helping offset the effects of higher payroll taxes and federal government budget cuts that began early this year.

“Interest rates are going up a little bit, that never helps,” Paul Ashworth, chief U.S. economist at Capital Economics in Toronto, said before the report. “But we still have the background of what looks like a still-improving housing market.”

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http://www.bloomberg.com/news/2013-08-16/u-s-consumer-confidence-falls-from-a-six-year-high.html

[hobbit709]

1. I'm pretty confident that I can barely afford the basics.

Beyond that I have very little confidence.

[Rosa Luxemburg]

2. I thought that they were going to keep interest rates down

sucks though for people who have actually saved. My small savings make almost nothing.