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Subscribe to RSSAmericans turned less optimistic about the economy in early February on worries about falling income even as their outlook on the jobs market rose to a record high, a survey released on Friday showed.
The Thomson Reuters/University of Michigan overall index of consumer sentiment fell to 72.5 in early February from January's 75.0, which was the highest level since February 2011.
The latest figure fell short of the median forecast of 74.5 among economists polled by Reuters.
"The personal financial situation of consumers remained dreary," survey director Richard Curtin said in a statement.
An improving financial situation was reported by just 23 percent of all consumers surveyed in early February, down from 29 percent in January and last year's 30 percent.
One in four families reported declines in income in the early February survey.
While more households were worried about shrinking paychecks, they reported a record level of optimism about job prospects. Last week, the U.S. Labor Department said the monthly jobless rate fell to 8.3 percent in January, a near three-year low.
"More consumers spontaneously mentioned hearing about increases in employment and job opportunities than ever before recorded in the long history of the surveys," Curtin said, adding that positive reports of job growth set a record in early February as they have doubled over the past three months.
The survey's barometer of current economic conditions fell to 79.6 in early February from 84.2 in January. Analysts had expected a figure of 84.5.
The gauge of consumer expectations dipped to 68.0 from 69.1. January's figure was the highest level since May 2011 and for February, analysts had predicted an even higher reading of 69.5.
In an uncertain economic climate, consumers shaved their short-term inflation outlook, but raised their expectations on long-term inflation.
The survey's expectations for one-year inflation slipped to 3.2 percent from 3.3 percent in January, while the survey's five-to-10-year inflation outlook rose to 2.9 percent, matching the level set a year ago, from 2.7 percent in the previous four months.
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How many more times are the headlines include "worry about Greece" and "Consumers upbeat"?
The "Holiday season" was unbelievably great until after it was over and the results were horrible.
Quit the lying and supporting the corrupt gov't and financial markets.
These maroons pump up the messiah Hussein like there's no tomorrow.
Wait til rating seasons and the "good news" will be every day.
Jello heads!
Probably because President Obama did NOT cause the economic meltdown, Republicans DID, and Republicans don't have a clue about how to fix anything they destroyed. In fact, Republicans haven't even been working for the American People in 3-1/2 years as their ONLY focus has been their obsession with President Obama.
Obama / Biden 2012
So your saying obama fixed it? Hmmm. I am glad you like his version of the economy because I certainly don't like it. High unemployment, high gas prices, bank bailouts and intrusive government . And yes obama signed the bank bailout measure. totally unnecessary and gave the banks trillions of dollars. Prosecutions ZERO! Maybe he should sell some more guns to mexicans to kill americans. He seems to be good at that.
The social unrest in Greece over their bankruptcy woes and the Eruo debt crisis is just beginning. The American economy is at great risk of stagnate growth by overseas issues. Syria, Iran and the looming crisis affecting European countries could create havoc for world economic markets and further slow an American recovery from gaining steam. Our own in-house problems with the housing spectacle, over spending bureaucracies, over extended State budgets, a devaluing dollar, and a tight choke hold on new investment opportunities by wall to wall regulations has turned these Unites States of America into a mirror image of the Japan's lost decade!