American consumer confidence is tumbled while the labor market slows down | Commercial and economic news
After a report on dull jobs last month, the Americans are less confident on short -term income and spend less.
The Americans are more pessimistic about the state of the United States economy after a low job report has shown cracks on the labor market.
The Board of Directors said Tuesday that its consumer confidence index fell to 97.4 this month after an upward revision 98.7 in July.
“In particular, the assessment of consumers of the current availability of jobs has decreased for the eighth consecutive month,” said Stephanie Guichard, principal economist of the global indicators at Conference Board.
“Meanwhile, pessimism about the future availability of jobs has increased and optimism on future income has faded slightly.”
Consumers are concerned about their income. The measurement that showed that short -term expectations of commercial conditions have dropped from 1.2 points to 74.8. The marker which generally signals an imminent recession is 80 years.
The labor market fuels the slowdown
While Unemployment and layoffs are historically low, there has been a significant deterioration on the labor market this year with amount of evidence that people find it difficult to find a job.
US employers added 73,000 jobs in July, well unless 115,000 analysts. Worse still, the revisions of the Bureau of Labor Statistics to its figures in May and June razed 258,000 jobs on previous estimates, and the unemployment rate reached 4.2% against 4.1%.
Another government report has shown that US employers posted 7.4 million vacant positions in June, compared to 7.7 million in May. The number of people leave their jobs – a sign of confidence in their prospects elsewhere – has also fallen.
More job data will be published next week when the government will publish its employment reports in August and June job reports.
The Conference Board said that the consumer survey he uses to calculate his consumer confidence index had revealed that references at high prices and inflation increased again and were often mentioned in tandem with prices.
Other government data of this month have shown that if consumer prices have been maintained quite stable from June to July, wholesale inflation in the United States increased unexpectedly last month.
President Donald Trump’s radical taxes on imports also assert costs for consumers.
The share of consumers expecting a recession in the next year has increased in August at the highest level since April, when the deployment of Trump’s tariff began, said the board of directors.
The share of respondents in the survey who said they intended to buy a car in the future close to the rose while those who planned to buy a house remained stable after the decline in July.
The number of consumers saying that they plan to buy large ticket items, such as household appliances, fell, but there were significant variations between product categories. Respondents who said they had planned to take a vacation soon, inside the United States or abroad also refused.
