Consumer Confidence Plunges as Food, Fuel Costs Soar

Friday, 16 May 2014 10:21 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Consumer confidence unexpectedly fell in May from a nine-month high, showing Americans are being shaken by rising grocery bills and elevated fuel costs.

The Thomson Reuters/University of Michigan preliminary sentiment index decreased to 81.8 from 84.1 in April. The median projection in a Bloomberg survey of economists called for a gain to 84.5.

Food prices have risen and the cost of gasoline has held near its highest level of the year, making buyers less secure in their finances.

Editor's Note: 250% Gains Bagged Using Secret Calendar (See Video)

Falling unemployment, rising home prices and near-record stock indexes could provide support for sentiment, giving Americans the wherewithal to boost the spending that makes up 70 percent of the economy.

“Higher energy prices, higher prices for gas, and the rising consumer food prices would be something I would look at as a factor holding back confidence gains,” Robert Rosener, an economist at Credit Agricole CIB in New York, said before the report.

“We’re watching these numbers closely to see what the household read is, whether they’re feeling the benefit of an improving labor market.”

Stocks declined after the report, with the Standard & Poor’s 500 Index losing 0.2 percent to 1,866.89 at 10:23 a.m. in New York.

Another report showed the pace of home construction jumped in April to its highest level since November, led by a surge in starts on multifamily projects.

Building Permits


Housing starts climbed 13.2 percent to a 1.07 million annualized rate following March’s 947,000 pace, according to Commerce Department figures. Starts exceeded all analysts’ forecasts, with the median estimate of 79 economists surveyed by Bloomberg calling for 980,000. Permits for future projects increased, a sign activity might accelerate in coming months.

Estimates for the confidence index among 66 economists in the Bloomberg survey ranged from 82 to 88. The gauge averaged 89 in the five years before December 2007, when the last recession began and 64.2 in the 18-month contraction that followed.

Editor's Note: 250% Gains Bagged Using Secret Calendar (See Video)

© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Housing Recovery Seen as Fragile Despite Sales at 6-Year High

Friday, 24 Oct 2014 12:17 PM

Sales of new U.S. single-family homes rose to a six-year high in September, but a sharp downward revision to August's sa . . .

New Home Sales Rise in September, but August Pace Cut

Friday, 24 Oct 2014 10:07 AM

Sales of new U.S. single-family homes rose to a six-year high in September, but a sharp downward revision to August's sa . . .

Fed's $4T Balance-Sheet Tactic to Buoy Economy Beyond QE

Friday, 24 Oct 2014 09:11 AM

Quantitative easing may turn out to be a gift that keeps on giving for the U.S. economy. . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved