A key survey has shown that US consumer confidence sank in October to levels seen during the depths of the last recession as Americans worried about the economy and high unemployment.
The Conference Board said its consumer confidence index stood at 39.8 in October, down sharply from 46.4 in September, when it had improved slightly.
"Consumer confidence is now back to levels last seen during the 2008-2009 recession, said Lynn Franco, consumer research director of the Conference Board.
"Consumer expectations, which had improved in September, gave back all of the gain and then some, as concerns about business conditions, the labour market and income prospects increased," she added.
The survey showed that US consumers' assessment of present-day conditions fell for the sixth consecutive month.
US home prices edge higher in August
US home prices ticked slightly higher in August from a month earlier as the sick housing market showed no clear sign of recovery five years after a price bubble burst, data showed today.
Prices on single-family homes rose 0.2% from July in 20 major metropolitan areas, but were down 3.8% from August 2010, according to the S&P/Case-Shiller 20-City Composite index.
The incremental monthly increase in prices illustrated the depth of the housing slump more than two years after the severe recession officially ended.
Average home prices across the US are only back to the levels where they were in mid-2003, S&P said. The crippled housing market remains a key hurdle for recovery in the world's largest economy.
US President Barack Obama yesterday unveiled measures to help people whose homes are now worth less than what they owe on them to refinance their mortgages at lower interest rates.
Obama chose Las Vegas, the epicentre of the property crash, to roll out the plan amid high unemployment stuck at 9.1%. Nevada has the highest unemployment of any US state, at 13.4%.
Today's report shows that Las Vegas again was the one city that posted a new index low in August 2011, with prices 59.5% below their 2006 all-time peak.
