- Consumer sentiment in the month of July fell again much more than expected, with the decrease likely due in part to concerns about the labor market.
- Report showed that consumer sentiment came in at 64.6 compared the final reading of 70.8 for June. Economists had been expecting a more modest decrease to a reading of about 70.0.
"Consumers concluded that the economic downturn would last longer and their personal finances would not recover as quickly as they had previously expected." – Officials at the Reuters/University of Michigan Survey.
- Expectations fell to 60.9 in July from 69.2 in June.
- Current conditions index fell to 70.4 in July from 73.2 in the previous month.
"The drop in current conditions can be explained by disappointment over the unexpectedly big decline in June payrolls and the unemployment rate's rise to 9.5%, both of which received plenty of media attention. But expectations were down more than current conditions, suggesting the other big news story of the second half of May - the cap and trade and healthcare reform bills - may have been an even bigger factor in the confidence drop,"” - Chris Low, chief economist at FTN Financial
- Consumers are concentrated heavily on reducing outstanding debts. Overextended finances and job and income uncertainty have made consumers much more saving minded.
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