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US Consumers Wary, Economic Data Remains Mixed
The latest economic data for the U.S. has painted a picture of an unsteady economic recovery, leaving consumers uncertain about the outlook for personal finances and the economy as a whole, according to Bloomberg.
The latest economic data for the U.S. has painted a picture of an unsteady economic recovery, leaving consumers uncertain about the outlook for personal finances and the economy as a whole, according to Bloomberg. On Thursday, Bloomberg reported that its index of consumer expectations fell to -31 in June, which is the lowest since March 2009 and marks a steep decrease from the -16 that was recorded in May. The 15-point drop was the largest in two-and-a-half years. The index of consumer comfort improved to -44 in the week ending Jun. 12, up to the highest level in two months from -45.9 in the previous week.
Chris Low of FTN Financial said, Consumers biggest concerns are about jobs and income, adding, The bottom line is that income is not keeping up with inflation right now. A separate report from the Labor Department showed that initial claims for jobless benefits dropped by 16,000 in the week ending Jun. 11 to a seasonally adjusted level of 414,000, which was less that the 420,000 expected by economists. According to The Wall Street Journal, the drop left the level of claims higher than the 400,000 mark that is associated with job growth. The four-week rolling average of new claims was at 424,750, unchanged from the previous week, and adds to a growing sense that the economic recovery is losing steam.
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