Americans pessimistic over jobs

CONFIDENCE among US consumers unexpectedly fell this month to the lowest level in four months as Americans grew more pessimistic about the labour market.

CONFIDENCE among US consumers unexpectedly fell this month to the lowest level in four months as Americans grew more pessimistic about the labour market.

The Conference Board’s confidence index fell to 64,9 from a revised 68,7 the month before, figures from the New York-based private research group showed yesterday.

The weakest payroll gains in six months may raise concerns that economic growth is not fast enough to bring down the jobless rate. More employment is needed to boost consumer spending, which accounts for about 70% of the economy.

“We are making progress when it comes to the labour market, but clearly this is another sign that it’s still very slow going,” said Aaron Smith, a senior economist at Moody’s Analytics in Pennsylvania whose forecast was closest.

“When we see expectations get marked down, that can cause consumers to think twice about making big-ticket purchases.”

Home prices in 20 US cities fell in the 12 months ended in March, the slowest pace in more than a year, other data showed yesterday.

The closely watched S&p/caseShiller index of property values declined 2,6% from a year earlier, the smallest decrease since December 2010, after a 3,5% drop in February, the group reported in New York.

The Conference Board’s measure of present conditions decreased to 45,9, the weakest since January, from 51,2 a month earlier. The gauge of expectations for the next six months fell to 77,6 from 80,4.

“Taken together, the retreat in the present situation index and softening in consumer expectations suggest that the pace of economic growth in the months ahead may moderate,” Conference Board director Lynn Franco said. Bloomberg