US Consumer Confidence Hits 2-year Low in August

Industry group the Conference Board released a new data showing that US consumer confidence plummeted in August to its lowest level in more than two years as political and economic uncertainties take its toll to many Americans.

A new data released by an industry group showed that US consumer confidence plummeted in August to its lowest level in more than two years as political and economic uncertainties take its toll to many Americans.

In a report, the Conference Board said consumer index dropped to 44.5 in August 2011 compared to downwardly revised 59.2 in July – it was the lowest level since April 2009

Also, the industry group said that consumer outlook fell sharply to 51.9 during the period, compared to 74.9 recorded in the previous month; while assessments of the present situation of consumers slightly decline to 33.3 in August from 35.7 in July.

Lyn Franco, Conference Board director, said that consumers are currently facing major hurdles, citing recent downgrade and political turmoil in the US has negatively affected spending habits.

“A contributing factor may have been the debt ceiling discussions since the decline in confidence was well underway before the S&P downgrade,” Franco said.

Meanwhile, France also said that consumers’ labor market assessment gathered negative response with 49.1 percent of respondents saying that they found jobs hard to get, up from 44.8 percent in the previous month. Also, those who said that jobs remained “plentiful” fell to 4.7 percent from 5.1 percent.

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