U.S. Consumer Comfort Gauge Drops

[marmar]

(Bloomberg) Consumer confidence in the U.S. slumped last week to the second-lowest level on record as Americans grew more concerned with their financial situation and the buying climate worsened.

The Bloomberg Consumer Comfort Index dropped to minus 53 in the period ended Sept. 25 from minus 52.1 the prior week. Similar readings were reached three times in the first half of 2009 and surpassed only by all-time lows of minus 54 plumbed in November 2008 and again in January 2009.

Ninety-three percent of those surveyed had a negative opinion of the economy as companies remain reluctant to hire and wages fail to keep pace with inflation. An ailing housing market and a decline in stock prices this year have taken a toll on household wealth, helping explain why Americans as limiting their spending.

“The discontent among the public across demographic and income groups strongly suggests that the problems in the labor market are extracting a powerful toll,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “The flat labor market and decline in real earnings will likely erode plans to spend heading into the critical holiday shopping season.” .........(more)

The complete piece is at: http://www.bloomberg.com/news/2011-09-29/u-s-consumer-confidence-hits-second-weakest-on-record-in-bloomberg-index.html