U.S. Consumer Confidence Drops as Rising Prices Squeeze Household Budgets

[Purveyor]

Source: Bloomberg

By Alex Kowalski

June 17 (Bloomberg) -- Confidence among U.S. consumers dropped more than forecast in June as households contended with higher prices that are eating into incomes amid slowing job growth.

The Thomson Reuters/University of Michigan preliminary index of consumer sentiment decreased to 71.8 from 74.3 in May. Economists forecast a reading of 74, according to the median estimate in a Bloomberg News survey.

While gasoline costs have retreated from the highest levels since July 2008, consumer budgets are being strained by rising prices for other goods and services. Unemployment climbed in May to the highest this year, and employers added the fewest workers in eight months, further stressing the largest part of the economy.

“Things have cooled off after better growth earlier in the year, and people are still worried about the labor market, housing and high gasoline prices,” said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida, who forecast the gauge would drop to 72. “If we get another break in gasoline prices, that will be very helpful for the consumer.”

Read more: http://noir.bloomberg.com/apps/news?pid=20601087&sid=aym6n3HSMdBw&pos=3

[Kurmudgeon]

1. Fascist Fuel inflation serves Oil Corp purposes.

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2. kr