Consumer Confidence Dips as Americans Face Bleak Job Outlook

Posted in Financial News , Savings Account • September 24, 2013

American consumers

U.S. consumer confidence in the economy dipped slightly this month from August, with many Americans less optimistic about the prospects of new employment or pay increases padding their savings accounts in the next six months.

American Consumers Don’t Believe Economy Will Improve Soon

Because the spending of American consumers accounts for 70 percent of overall economic activity, their confidence is constantly measured to gauge the health of the U.S. economy. The Conference Board, a private research group, reported its consumer confidence index dropped to 79.7 in September, a modest dip from 81.8 in August and well below the 90 reading that signals a healthy economy.

Lynn Franco, who oversaw the survey for the Conference Board, told USA Today that most participants voiced concerns about the U.S. job market and wages. ”While overall economic conditions appear to have moderately improved, consumers are uncertain that the momentum can be sustained in the months ahead,” Franco said.

American consumers were more cautious with their spending as their income barely grew in August. Although the U.S. unemployment rate dropped to 7.3 percent from 7.4 percent last month, it was mostly attributed to Americans who stopped looking for work and thus were no longer listed as unemployed.

A weak economic outlook for the rest of 2013 was also the main reason the Federal Reserve decided to delay the tapering of its monthly $85 billion in bond purchases, possibly until December.

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