“U.S. consumer sentiment unexpectedly dipped in November to a near two-year low as lower-income households worried about their job prospects and financial outlooks and negative views of the government lingered, a survey released on Friday showed,” Reuters reports. “The Thomson Reuters/University of Michigan’s preliminary reading on the overall index of consumer sentiment fell to 72.0 in November, its lowest since December 2011. That was lower than both October’s final reading of 73.2 and the 74.5 economists had expected this month.”
“Lower-income households in particular worried about their future financial state. That was a contrast to richer households—those with incomes above $75,000—which felt more optimistic as stock prices increases boosted net wealth gains,” Reuters reports. “Nevertheless, consumers largely remained nearly as negative on government policies as they were last month, when a federal government shutdown prompted worries growth would drag… ”
“The survey’s gauge of consumer expectations edged down to 62.3, compared to 62.5 in October and expectations of 64.0. The index of current conditions slipped to 87.2 from 89.9 last month. Analysts had projected a reading of 90.0,” Reuters reports. “U.S. consumer spending increased modestly in September as households boosted their savings and inflation remained benign, pointing to sluggish domestic demand. The Commerce Department said on Friday consumer spending rose 0.2 percent after advancing 0.3 percent in August.”
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“There were a net 204,000 new jobs created for the month, though the unemployment rate rose to 7.3 percent and households reported a huge drop in employment, the Bureau of Labor Statistics said,” Jeff Cox reports for CNBC. “A separate measure that includes the underemployed and those who have quit looking also moved higher, from 13.6 percent to 13.8 percent.”
“The civilian labor force tumbled by 720,000 and the labor force participation rate fell to its lowest since March 1978,” Cox reports. “Most startlingly, the household survey actually saw employment fall by 735,000 for the month.”
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MacDailyNews Take: Not the greatest news for Apple’s 2013 Christmas shopping season prospects in the company’s largest market.
[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]
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Anemic U.S. jobs report heightens concerns that lackluster economy stalling – October 22, 2013
