Consumer confidence drops to lowest of the year

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Fizzled in July to the lowest level of the year falling consumer sentiment, as far as a gloomy picture took the Americans of their work and income prospects, a survey showed on Friday.

The Thomson Reuters/University of Michigan's final reading on the overall index on consumer sentiment fell of to 72,3 73,2 in June. It the second month in a row, the attitudes have cooled and the lowest level since December.

That was a touch higher than the expectations of economists hold steady with July preliminary reading of 72.

"While consumers do not expect a recessionary economy decline, they expect no pace of economic growth, which could satisfactorily to revive job and income prospects," said survey Director Richard Curtin in a statement.

"In addition, consumers have increasingly convinced that current economic policy not in the location with views on the economy are to solve underlying problems."

Concerns the increase in food prices appeared a toll, with 45 percent of consumers that their finance recently had deteriorated, citing lower income and higher prices should get say. Only 10 percent expected inflation-adjusted gains in their income next year.

While Americans expect not another recession, half thought that the economy had deteriorated in the past year. Confidence in the economic policies remained low with only 11 percent close to all-time, the a positive view.

The survey barometer of current economic conditions slightly up to 82,7 slipped 65.6 from the 67,8 of 81.5, while the gauge of consumer expectations.

A one-year inflation expectations declined from 3.1 per cent to 3.0 per cent. The five-until 10 years inflation Outlook eased to 2.7 percent from 2.8%, suggesting that consumers expect that food to temporary price increases to be limited.

Copyright 2011 Thomson Reuters.