Americans’ consumer confidence hits six-month low

Confidence among U.S. consumers declined in June to the lowest level this year as the labor market showed few signs of improving, Bloomberg reports. The Thomson Reuters/University of Michigan index of consumer sentiment fell in June to 74.1 from 79.3 the prior month—which was the highest level since October 2007. The gauge fell much further than the 77.5 to which it was projected to dip, according to a median forecast of 66 economists surveyed by Bloomberg. A pace of job growth that has slowed for four straight months and wage gains that are failing to keep pace with inflation are offsetting cheaper prices at the gas pump. At the same time, households may be feeling less wealthy, as Europe’s debt crisis roils share prices, raising the risk that consumer spending will stagnate. The decline in the consumer index this month is its first decrease in 10 months. The index averaged 64.2 during the last recession and 89 in the five years before the 18-month economic slump that ended in June 2009. The reading for June, however, contrasts with the Bloomberg Consumer Comfort Index, which has increased the past four weeks after reaching an almost four-month low in the second week of May. Read the full story here for more details on the differences between the two indexes.