Consumer confidence drops to lowest of the year

5:00 AM confidence, consumer, drops, lowest No Comments

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.

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Claims increase unemployment drops, hope for the labour market

6:30 AM claims, drops, increase, labour, market, unemployment No Comments

By NBC News staff and wire reports
Americans filed fewer applications for unemployment last week, insurance, delete the increase in unemployment claims last week and a glimmer of hope for the struggling labor market.

Seasonally-adjusted claims reported the Labor Department Thursday of 35,000 on 353.000 left. The four week moving average, a better gauge of the work seen market conditions, because it folds in the data smoothes deleted 8,750 to 367.250.

Unemployed demands strengthening ensure that the U.S. job market succumbing to worries about Europe's debt crisis and deadlock in Washington was recently been on the rise. The unemployment rate was 8.2 per cent in June, if company a lukewarm 80,000 new jobs created.

But the jobless claims data were volatile, because in this year car manufacturers perform less temporary plant shutdowns, from the model, the Department used to smooth the data for the typical seasonal patterns.

A Labor Department official said that they still have experienced volatility related to the auto layoffs happen in this time of year. Otherwise, the data had some points of light. Only numbers for Utah were estimated.

The labour market has suffered three months private sub 100,000 jobs, as the economy slowed down in the midst of a cloud of uncertainty by fears of strong contraction fiscal policy and debt problems in Europe brought forth.

Federal Reserve Chairman Ben Bernanke told lawmakers last week that additional measures would take the Fed last month expanded its efforts to advance the economy, when officials came to the conclusion that no progress towards higher employment was.

Benefits after regular State programs after a first week of the number of people still receiving aid 30,000 to 3,2870 million in the week fell ended on July 14.

Reuters contributed to this report.

By Rick Santelli CNBC takes a look at the 35,000 decline per unemployed demands and boost the durable goods with CNBC from Steve Liesman in June.

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Consumer sentiment drops to 6-month low

11:00 AM 6month, consumer, drops, sentiment No Comments

U.S. consumer sentiment fell in early June to a six-month low on worries about deterioration in the jobs market and Europe's festering debt crisis, a survey released on Friday showed.

Americans downgraded their economic outlook after their confidence improved in May to its highest level since October 2007.

"It's more convincing evidence that the economy is stuck in low gear. We've had a steady stream of negative data that increases pressure on the Fed to do more," said Joe Manimbo, Travelex market analyst.

The Thomson Reuters/University of Michigan's preliminary reading on the overall index on consumer sentiment fell to 74.1 in June from to 79.3 in May, falling short of the 77.5 reading predicted by economists recently polled by Reuters.

This was the weakest reading since 69.9 in December.

"Income losses were reported by nearly one-third of all households in early June and the news reaching consumers about job prospects turned negative for the first time since late 2011," survey director Richard Curtin said in a statement.

"In addition, a small but rising number of consumers reported their concerns about the fallout from Europe, the most that mentioned the potential domestic impact from an international crisis since the Asian flu in 1998," he said.

Consumer sentiment is seen as a predictor of consumer spending, which accounts for roughly two-thirds of the U.S. economy.

There has been data pointing to a pullback in spending. On Wednesday, the government reported retail sales fell for a second straight month after steady growth in the first quarter.

Renewed concerns about jobs and problems in Europe undermined consumers' current and future outlook on the economy.

The survey's barometer of current economic conditions fell to 82.1 in early June, the lowest level in six months and below the 85.3 figure predicted by analysts. It stood at 87.2 at the end of May, which was the highest since January 2008.

The survey's gauge of consumer expectations declined to 68.9 in early June, the lowest since December and falling short of a median forecast of 71.8. It was 74.3 at the end of May, which was the highest since July 2007.

This less optimistic outlook in early June coupled with a drop in the likelihood that families will buy cars, refrigerators and other big-ticket items, the survey showed.

Its index on buying conditions for durables fell to 125, matching the level seen in March, from 132 in May.

The survey's one-year inflation expectation among consumers was unchanged at 3.0 percent, but its five-to-10-year inflation outlook rebounded to 2.9 percent in early June after falling to 2.7 percent in May.

Copyright 2011 Thomson Reuters.

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