US consumer confidence sees Sharp Falls

The confidence of consumers in the U.S. saw a surprisingly sharp decline in February with a view of the growing labor market and business conditions, says a survey.

The Conference Board Consumer Confidence Index fell to a 10-month low of 46, from 56.5 in January. Analysts expected a decline to 55

The report appeared to concern on Wall Street. The Dow Jones closed down 101 points, 1% percent to 10,292.4

The data came as several U.S. retailers reported higher profits, but weak sales.

The combination of job and income concerns is likely to continue to curb spending
Lynn Franco, Conference Board Consumer Research Center

For the three months to the end of January, Macy’s made a profit of $ 466m (£ 302m), while Home Depot recorded a $ 342 million profit. Both companies had recorded losses in the same quarter last year.

$ A profit for the quarter increased 54% over the previous year up to 936m, while Sears’ profit more than doubled to $ 430m.

The goal was the only one of four retailers to growth in same-store U.S. sales, with sales growth of 0.6%.

Macy’s same-store sales declined by 0.8%, while Home Depot was lower by 1.1%, and Sears’ lost 2.5%.

Historic low

February, consumer confidence reading from the Conference Board is well below the 61.4 figure in September 2008 included, if the global financial crisis intensified.

And since the index began in 1967, the average reading was 95.6.

Lynn Franco, director of the Conference Board Consumer Research Center, said it would take some time, consumer confidence begins to recover.

“Stop The combination of earnings and job fears likely to curb spending,” she said.

Analyst Tom Porcelli, senior economist at RBC Capital Markets, said the report was “flat-out bad.”

“I think if you’re looking for signals for use or occupation, there are no positive signs here,” he added.