Consumer confidence Drops in July drops to its lowest level since February. Confidence fell due to concerns about the economy, job prospects, slow growth of the economy and homes prices increase even though the house market recovery is not improved.
The Conference Board release on today consumers worried about the job picture.
Confidence fell to 50.4 in July from revised June 54.3. Below the forecast of 51 from a Reuters poll.
“There have been quite a few headwinds — the fiscal stimulus is fading, the European situation certainly did have an impact on consumer confidence and inventories are being brought more into line,” said David Sloan, economist at 4Cast in New York. “But clearly the big problem for consumers is jobs.”
U.S. Treasuries trimmed losses and stocks pared gains after the dim consumer confidence reading as investors bought safe government assets.
“Concerns about business conditions and the labor market are casting a dark cloud over consumers that is not likely to lift until the job market improves,” said Lynn Franco, Director of The Conference Board Consumer Research Center.