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Sharp fall in US confidence index | Sharp fall in US confidence index |
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Confidence among US consumers saw a surprisingly sharp fall in February as concerns grew about the jobs market and business conditions, a survey says. | Confidence among US consumers saw a surprisingly sharp fall in February as concerns grew about the jobs market and business conditions, a survey says. |
The Conference Board consumer confidence index fell to 46 from 56.5 in January. Analysts were expecting a less drastic decrease to 55. | The Conference Board consumer confidence index fell to 46 from 56.5 in January. Analysts were expecting a less drastic decrease to 55. |
The report appeared to concern Wall Street, with the main Dow Jones index down 0.7% or 72 points to 10,312. | |
The data came as several US retailers reported higher profits but weak sales. | |
The combination of earnings and job anxieties is likely to continue to curb spending Lynn Franco, Conference Board Consumer Research Centre | |
For the three months to the end of January, Macy's made a profit of $466m (£302m), while Home Depot recorded a $342m profit. Both firms had recorded losses in the same quarter a year ago. | |
Target's profit for the quarter rose 54% from a year earlier to $936m, while Sears' profit more than doubled to $430m. | |
Target was the only one of the four retailers to see growth in same-store US sales, with sales up 0.6%. | Target was the only one of the four retailers to see growth in same-store US sales, with sales up 0.6%. |
Macy's same-store sales were down 0.8%, while Home Depot's were 1.1% lower, and Sears' lost 2.5%. | |
Historic low | |
February's consumer confidence reading from the Conference Board is well below the 61.4 figure recorded in September 2008 when the global financial crisis intensified. | |
And since the index started back in 1967, the average reading has been 95.6. | |
Lynn Franco, director of the Conference Board Consumer Research Centre, said it would be some time before consumer confidence starts to recover. | |
"The combination of earnings and job anxieties is likely to continue to curb spending," she said. | |
Analyst Tom Porcelli, senior economist at RBC Capital Markets, said the report was "flat-out bad". | |
"I think if you're looking for signals for consumer spending or jobs, there are no positive signals here," he added. |