Market Features
The Consumer a Bit Dispirited
TSC Staff
09/30/05 - 10:26 AM EDT
For the second time this week, the consumer, the bedrock of the U.S. economy, was found to be sullen in the face of high energy costs and continuing talk about inflation.
The University of Michigan's final consumer sentiment index for September came in weak, as economists expected, registering a level of 76.9 Friday compared with the 78.0 estimate.
The final number was unchanged from a preliminary reading two weeks ago. The Michigan index stood at 89.1 for August.
On Tuesday, the Conference Board's consumer confidence measure saw its biggest point drop since October 1990 as Americans expressed their uncertainty about what effects they'll ultimately feel from higher rates, pricey gas and hurricanes.
The consumer confidence index fell to 86.6 from a revised reading of 105.5 in August and reached its worst point in two years.
Separately, the Commerce Department said personal income fell 0.1% in August, and spending sank 0.5%, the biggest decline in nearly four years. Excluding the effects of Hurricane Katrina, which hit the Gulf Coast late last month, income would have risen 0.2%.
Economists had been expecting personal income to climb 0.3%, and they believed spending would fall 0.2%.