labels: economy - general
Data reveals surprising fall in US consumer confidence news
03 March 2007

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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Data reveals surprising fall in US consumer confidence