Consumer Confidence in U.S. Declines to a Seven-Month Low
Source: Bloomberg/BusinessWeek
By Michelle Jamrisko November 26, 2013
Confidence among U.S. consumers unexpectedly declined in November to a seven-month low as Americans grew more pessimistic about the labor-market outlook.
The Conference Board’s index fell to 70.4 from a revised 72.4 a month earlier that was stronger than initially estimated, the New York-based private research group said today. The median forecast in a Bloomberg survey of 78 economists called for a November reading of 72.6.
The drop in sentiment helps explain why some retailers such as Best Buy Co. see a need to match competitors’ discounts this holiday-shopping season. More employment opportunities and wage gains would help lay the groundwork for a pickup in household purchases that make up about 70 percent of the U.S. economy.
“The economy just has not performed very well this year and has been disappointing relative to what most people were hoping for and expecting through the course of the year,” said Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut. “It’s one thing when you have one or two years into the recovery and things aren’t progressing in the job market, but here we are four-plus years in.”
Read more: http://www.businessweek.com/news/2013-11-26/consumer-confidence-in-u-dot-s-dot-declines-to-a-seven-month-low-1
