Americans’ Outlook for U.S. Economy Falls to Seven-Month Low
By Victoria Stilwell May 22, 2014 9:45 AM ET
Americans’ expectations for the economy deteriorated to a seven-month low in May, a sign that the rebound from weakness earlier this year may be limited by still-cautious consumers.
An expectations gauge that tracks where the economy is heading declined to 42.5 in May from 48 in the month prior, data from the Bloomberg Consumer Comfort Index showed today. The share of respondents who said the economy was getting worse climbed to the highest level this year. The weekly measure of sentiment declined to 34.1 in the period ended May 18 from 34.9, the third straight drop.
Wages last month failed to keep pace with a rising cost of living as prices increased for such necessities as food and fuel. Stronger hiring that leads to fatter paychecks would help spur confidence and provide households the wherewithal to boost their spending.
“We’re having a very disappointing rebound from a slowdown that was thought to have been caused only by the weather,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. The lagged effect of elevated interest rates and gasoline prices, as well as weaker equity gains, “have taken at least a temporary bite out of sentiment.”
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http://www.bloomberg.com/news/2014-05-22/americans-outlook-for-u-s-economy-falls-to-seven-month-low.html
