Consumer confidence waned last week
Washington, D.C. -- The Bloomberg Consumer Comfort Index fell to minus 34.4 in the seven days ended Jan. 6 from minus 31.8 the prior period, the biggest one-week drop since August. Jobless claims increased by 4,000 to 371,000 in the week ended Jan. 5, according to Labor Department figures.
“Consumers are coming to the realization that their take- home pay is going to get smaller,” said Richard Yamarone, a senior economist at Bloomberg LP in New York. “That will translate into weaker spending. I expect the economy will spin its wheels for many months until the jobs picture and associated incomes improve.”
The Bloomberg index indicated those with less disposable income showed the biggest declines in confidence last week. Americans making between $25,000 and $39,999 were the most pessimistic in three months, and confidence among those earning $15,000 to $24,999 a year fell by the most in two months.
Consumers on the other end of the income scale remained more confident. The figures showed comfort among those earning $50,000 or more annually climbed to the highest level since November 2007. Sentiment among those making $100,000 or more was the highest since October 2010.