The confidence of American consumers in their economy has slipped unexpectedly in July after it had risen the previous three months.
The Consumer Confidence Index dropped from 106.2 in June to 103.2 this July, the Conference Board said in New York. Analysts blame it on Amercians' increased fear over job security, wage perspectives, and rising gas prices.
But Lynn Franco, director of the board's Consumer Research Center, is unconcerned: "The overall state of the economy remains healthy and consumers' outlook suggests no storm clouds on the short-term horizon."
In the last months, several large American corporations have announced job cuts. Among them are Eastman Kodak, Hewlett-Packard, and Kimberly-Clark.
Private consumer spending is considered to be the backbone of the U.S. economy since it accounts for two-thirds of its Gross Domestic Product. However, in the last few years, the correlation between consumer confidence and actual retail sales has been questioned since consumers were spending money even when survey figures said they wouldn't.
Share this: 





Public domain
Public domain
false
false

This page is archived, and is no longer publicly editable.
Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.
Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.
Note that some listed sources or external links may no longer be available online due to age.
Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.
Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.
U.S. consumer confidence drops