Source:
Bloomberg July 28 (Bloomberg) -- Confidence among U.S. consumers fell more than forecast in July, reflecting a surge in unemployment that threatens to undermine household spending.
The Conference Board’s confidence index dropped to 46.6, a second consecutive decline, following a reading of 49.3 in June, a report from the New York-based group showed today. The figure reached a record low of 25.3 in February.
Stocks slumped and Treasuries rose after the report. Consumer spending accounts for about 70 percent of the economy, and any renewed decline would temper a recovery from the worst recession in five decades.
“Folks are still concerned about their jobs,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina.
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Unemployment Outlook
The drop in confidence reflects rising concern about the job market. Unemployment is projected to top 10 percent by early 2010, a gain that will erode buying power and prompt Americans to save more.
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