US
Consumers, the biggest drivers of the US economy, turned
unexpectedly pessimistic in February over their economic
future well-being.
Data
from the University of Michigan for February shows that
US consumer confidence fell, powered by high fuel prices
and concerns about job security and the state of the US
economy.
The consumer sentiment index, which was 96.9 in January
2007, fell to 91.3 in February far lower than the 93.5
forecast by analyst. The figures follow the global stock
market tilt as investors question the outlook for global
growth.
According
to a statement from the university, "Consumer confidence
continued to slide in late February due to rising concerns
about the outlook for the national economy.
Virtually
the entire decline in consumer confidence was among lower
income households, with concerns about incomes and jobs
significantly higher than among families with incomes
above $50,000, the statement added.
According
to the university of Michigan, its gauge of economic conditions
fell to 106.7 in February from 111.3 in January. This
suggests that consumers are feeling less optimistic about
the current economy and future prospects.
Earlier
this week, US government data showed that the US economy
grew by 2.2 per cent in the last quarter of 2006, compared
with a 2 per cent rate of growth in the previous quarter.
At
the same time, figures showed that consumer spending had
increased during the same period.
While
consumer confidence and spending may be waning, it was
dropping from a high level and the dip was unlikely to
derail the US economy, analysts said.
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