US Consumers Grow More Pessimistic

Posted August 30th, 2011 at 10:50 am (UTC-5)
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U.S. consumer confidence fell sharply in August, hitting its lowest level in two years.

Tuesday's report from the Conference Board says consumers grew even more worried about jobs during the month. The business research group says consumers may have also been discouraged by the lengthy bout of political bickering in Washington over the debt ceiling, government spending, taxes, and the economy. They have also been influenced by falling prices for homes in many areas.

Experts watch consumer attitudes because they can influence the consumer spending that drives most U.S. economic activity.

A separate report from a private research group showed home values continued falling in the 12 month period that ended in June. While overall prices are down 4.6 percent for the year, the rate at which prices are declining slowed slightly. That is due in part to a few cities seeing prices rising in the past few months.

Severe problems in the housing market sparked the economic crisis, and continue to inhibit the recovery.