WASHINGTON – Confidence among consumers fell in September to a four-month low as Americans grew less upbeat about the outlook for employment.
The Conference Boards index declined to 79.7 from a revised 81.8 a month earlier that was stronger than initially estimated, the New York-based private research group said Tuesday. The median forecast in a Bloomberg survey of economists called for a decrease this month to 79.9.
Uneven employment growth and limited wage gains are keeping consumer purchases, which make up about 70 percent of the worlds largest economy, from accelerating. At the same time, a pickup in household wealth reflecting improved property values and higher stock prices may help ensure Americans wont retrench.
The quality as well as the pace of new jobs has not been improving, Yelena Shulyatyeva, an economist in New York at BNP Paribas, said before the report. Mortgage rates may not be high by historical standards, but a noticeable increase is also weighing on sentiment, she said.
Estimates of consumer sentiment ranged from 76 to 83 in the Bloomberg survey of 78 economists after a previously reported August reading of 81.5.
The Conference Boards measure averaged 53.7 in the recession that ended in June 2009. The cutoff date for the survey was Sept. 13, around the time the Obama administration was considering a military strike on Syria.
Another report Tuesday showed home prices climbed in the 12 months to July by the most since February 2006.
The year-over-year gain matched the median projection of 31 economists surveyed by Bloomberg.
The Conference Boards barometer of consumer expectations for the next six months fell to 84.1 after 89 a month earlier. A gauge of present conditions improved to 73.2 in September from 70.9 a month earlier.
At the same time, the gap between those who said work opportunities are currently scarce, and those who said theyre easy to get, shrank to the lowest since September 2008.