Consumer confidence wobbles in the US
Consumer confidence is falling in the US according to the Consumer Confidence Index, supplied by the Conference Board's Consumer Research Centre. The index has fallen slightly to 116.5 from 118.9 in June. Consumer confidence is critical for the US economy because it accounts for two thirds of the country's economic activity. The index started with a value of 100 when it began in 1985 and is based on a monthly survey of 5,000 US households.
Lynn Franco, director of the research centre, said that the decline in confidence signals slow economic growth ahead for the US economy. However, the data suggested that consumer spending will be resilient in the face of deteriorating conditions in manufacturing and the labour market. There were also signs that consumers believed the economy would bounce back later in the year
