Besieged by renewed anxieties, consumer confidence tumbles
A report released Friday showed that consumer confidence fell in July to its lowest point in nearly a year. A volatile stock market, near-double-digit unemployment, lackluster wage gains and a stalled housing market have raised fears that the recovery is on the verge of bogging down.
Americans reacted by clamping down on their spending in May and June. Many cut back after the stock market lost about 10 percent of its value over the past three months, as Europe’s debt crisis shook Wall Street. The resulting loss of household wealth has left many Americans less inclined to spend.