Consumer Confidence Hits Seven-Month Low on Job Fears

Tuesday, 28 Sep 2010 10:06 AM

Confidence among U.S. consumers fell in September to the lowest level in seven months as Americans became more pessimistic about the labor market.

The Conference Board’s confidence index declined to 48.5, lower than forecast, from 53.2 the prior month, figures from the New York-based private research group showed today. The median estimate of economists in a Bloomberg News survey was for a decline to 52.1.

An unemployment rate that’s forecast to exceed 9 percent through 2011 points to limited income gains, making it less likely Americans will boost their spending, which accounts for about 70 percent of the economy. The report underscores the view of Federal Reserve policy makers that the recovery is “likely to be modestâ€