Consumer Sentiment in U.S. Drops to Year’s Low: Economy


14/07/2012 09:41 AST  Bloomberg

Confidence among U.S. consumers unexpectedly declined in July to the lowest level this year as Americans grew more pessimistic about their finances.

The Thomson Reuters/University of Michigan index of consumer sentiment dropped to 72 this month from June’s 73.2 reading. The gauge was projected to rise to 73.5, according to a median forecast of 69 economists surveyed by Bloomberg News.

The weakest quarter of hiring by companies in two years along with stock market volatility tied to Europe’s debt crisis threaten to hold back the household spending that accounts for about 70 percent of the economy. Sales at retailers such as Hhgregg Inc. (HGG) may struggle as fewer consumers expect their incomes to increase.

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