U.S. Consumer Sentiment Unexpectedly Falls to Six-Month Low on Job Outlook

Source: Bloomberg

By Shobhana Chandra

May 31 (Bloomberg) -- Confidence among U.S. consumers unexpectedly declined in May to a six-month low as Americans’ outlook for business conditions and the labor market soured.

The Conference Board’s index dropped to 60.8 from a revised 66 reading in April, figures from the New York-based private research group showed today. The median forecast of economists surveyed by Bloomberg News called for a rise to 66.6. Other data today showed a drop in home prices and weakening manufacturing.

Americans became more pessimistic about their incomes, which are getting squeezed by higher grocery bills and gasoline that’s exceeded $3.50 a gallon since early March. The lack of faster job and wage growth means consumer spending, which accounts for about 70 percent of the economy, may remain restrained and keep the expansion from quickening.

“Consumer spending could be quite stagnant because of the elevated fuel prices,” Lindsey Piegza, an economist at FTN Financial in New York, said before the report. “Lower fuel costs would lead to a somewhat more favorable pace of consumer spending. It comes back to the need for faster job creation and income growth.”

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but so many are distracted that they won't realize that they have been royally screwed until they are evicted and pushing a shopping cart loaded with their last few belongings.