Consumer Sentiment Weakens

July 15, 2010  by in UnCategorized   

By Home Furnishings Business in economic news on July 16, 2010 Consumer sentiment weakened in early July to its lowest in 11 months on a resurgence in fears about the economy, a year since the recovery began, according to the Thomson Reuters/Unversity of Michigan's Surveys of Consumers.

The reversal in sentiment followed the survey's strongest level in more than two years last month on hopes of better job and credit conditions.

The survey's preliminary July reading on the overall index on consumer sentiment dropped to 66.5 from 76.0 in June.

"Income and job prospects were extraordinarily weak and those bleak prospects have made consumers much more cautious spenders," said Richard Curtin, director of the surveys.

The latest survey showed consumers' intention to buy durable items such as cars fell to its lowest in nine months.

"Moreover, consumers reported renewed weakness in the economy and were more likely to anticipate additional problems in the year ahead," Curtin said.

The survey's barometer of current economic conditions tumbled to 75.5 in early July, the lowest since November 2009. This compared with 85.6 in June, which was the highest since March 2008.

The survey's gauge of consumer expectations slid to 60.6, the lowest since March 2009. This compared with 69.8 in June.

The measure on consumers' 12-month economic outlook deteriorated to 65.0 in early July, which was the lowest since April 2009. It stood at 79.0 in June.