Consumer Confidence Down as June Losses Caught Up With Economic Sentiments

 The US Labor Department on Thursday reported that the number of jobless people increased in June, which greatly affects the American consumers’ outlook on the economy and its spending confidence.

Analysts said that the job data report only shows the “real” development on the economy. They added that the increasing number of jobless people will only add up on the burden of the economic gauge, which had earlier shown signs of hope.

The coming months will be the critical point of the development as the American consumer confidence fell from 54.8 to 49.3 in June, analysts said.

Meanwhile, the US Treasury Department said that the housing market drop is showing signs of slowing down as foreclosures tick up in the first quarter of 2009. However, contrary to the report, housing price index are showing signs of moderated decline.

Wachovia Senior Economist Mark Vitner said that consumers may now be looking at the glass half full rather than half empty. He added that most of the American people are assessing their own financial position by having a more accurate and more somber assessment of the economy.

Based on records, the American spending accounted to more than two-thirds of the US economic activity, which make the development more vulnerable if the consumers are thinking twice in spending their money.