U.S. Consumer Confidence Falls More Than Forecast Amid Rising Joblessness

[Purveyor]

Source: Bloomberg

July 28 (Bloomberg) -- Confidence among U.S. consumers fell more than forecast in July, reflecting a surge in unemployment that threatens to undermine household spending.

The Conference Board’s confidence index dropped to 46.6, a second consecutive decline, following a reading of 49.3 in June, a report from the New York-based group showed today. The figure reached a record low of 25.3 in February.

Stocks slumped and Treasuries rose after the report. Consumer spending accounts for about 70 percent of the economy, and any renewed decline would temper a recovery from the worst recession in five decades.

“Folks are still concerned about their jobs,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina.

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Unemployment Outlook

The drop in confidence reflects rising concern about the job market. Unemployment is projected to top 10 percent by early 2010, a gain that will erode buying power and prompt Americans to save more.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=a8mBvuKvJlrk

[Deja Q]

1. Given the quality of many goods on the market, why would people WANT to spend anymore?

All that hard earned money for literally dumpster junk.

[ixion]

2. see, the thing is, most people don't work for Goldman Sachs

hence the economy still sucks.

Only behind the rose-colored glasses of Wall St. are there 'green shoots'.