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U.S. Consumer Confidence Shows Underlying Weakness in January

January 31, 2012 11:55 AM EST
U.S. consumer confidence in the month of January fell as economic turmoil in Europe continues and unemployment remains moderately high.

A report from the Conference Board Tuesday showed the confidence index fell from an upwardly-revised reading of 64.8 in December to 61.1, well below the economist estimate of 68.0. The reading was below even the most pessimistic projection of 62.5.

A measure of current conditions was lowered from 46.5 in December to 38.4.

The number of people surveyed who felt jobs are becoming harder to obtain rose from 41.6 percent to 43.5 percent, setting a new three-month high. Consumers who feel jobs are plentiful declined from 6.6 percent to 6.1 percent.

Employers around the U.S. added 145,000 jobs during the month of January, substantially better than the 200,000 employees who lost their jobs throughout the 17 euro zone nations in December. EU officials announced earlier unemployment is currently sitting at levels not seen before the Euro was established.

People have begun rebuilding their savings accounts after watching them fall over the last few years. Consumers are also seeing an increase at the pump as the price of a gallon rose 7.5 percent from the average in December.

While stocks began the day in the green, they are now both lower: the Dow is down about 78 points, the Nasdaq is down almost 12 points, and the S&P 500 is down almost 6 points.


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