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Stabroek News

US consumer confidence falls amidmarket volatility
published: Wednesday | August 29, 2007

Consumer confidence in the United States weakened in August as volatile financial markets and housing problems took a toll, a private research group said Tuesday.

The New York-based Conference Board said that its Consumer Confidence Index declined to 105.0 from a revised reading of 111.9 in July, which was a six-year high the index was down, it was slightly stronger than the 104.5 that Wall Street analysts expected.

"A softening in business conditions and labour market conditions has curbed consumers' confidence this month," said Lynn Franco, director of The Conference Board Consumer Research Center. "In addition, the volatility in financial markets and continued subprime housing woes may have played a role in dampening consumers' spirits."

Consumers' assessment

Some 5,000 households are polled in the survey. The Present Situation index, which measures how shoppers feel now about economic conditions, decreased to 130.3 in August from 138.3 in July.

The Expectations Index, which measures shoppers' outlook for the next six months, fell to 88.2 from 94.4. Consumers' assessment of the labour market only weakened slightly.

Those saying jobs are 'hard to get' increased to 19.7 per cent in August from 18.7 per cent.

Those saying jobs are plentiful fell to 27.5 per cent from 30.0 per cent in July, and those saying jobs are not so plentiful rose to 52.8 per cent from 51.3 per cent.

-AP

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