Consumer confidence hits 10-month low; threatens spending
US consumer confidence dropped to a 10-month low in February as job outlook stubbornly refused to improve and the recovery remained slower than expected.
Lowering of consumer confidence has now threatened to consumer spending further slowing down the economy. Consumer confidence in February remained at its lowest level since April 2009.
Post publication of the data the US stock market witnessed a fall in early trades on Tuesday. The consumer confidence report warned against drop in consumer spending due to lack of job growth and impaired household finances.
The country added 20,000 more to the job loss tally in January, data from the Labour Department indicated earlier this month. Moreover, unemployment rate is expected to hover around 9.8 per cent through out this year.
Director of Consumer Research Foundation Lynn Franco said in a statement that consumers continued to be pessimistic about income prospects. As per him, this anxiety might lead to a fall in consumer spending, which constitutes about 70 per cent to the country's economy.
Consumer spending decreased 0.6 per cent during the last financial year, worst for the US since 1974.