Consumer Comfort in U.S. Falls by the Most in More Than a Year

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http://www.bloomberg.com/news/2012-04-26/consumer-comfort-in-u-s-falls-by-the-most-in-more-than-a-year.html

Consumer confidence in the U.S. dropped last week by the most in more than a year as perceptions of personal finances and the buying climate dimmed.

The Bloomberg Consumer Comfort Index fell to minus 35.8 in the period to April 22 from minus 31.4 the previous week, the biggest decline since March 2011. A gauge of the buying climate decreased to a two-month low, and a measure of household financial wherewithal fell by the most since September.

Payrolls grew in March by the least in five months, raising concern that growth is short of the pace needed to trim an unemployment rate hovering above 8 percent. Bigger advances in jobs and incomes would provide a cushion against elevated fuel costs and allow households to accelerate spending, which accounts for about 70 percent of the economy.

“It is going to be difficult to generate large improvements in sentiment unless the economy begins to pick up,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “Jobs are growing, but not fast enough. There’s a risk the pace of consumption will slow this quarter.”