Consumer confidence in the US economy in August dropped almost 15 points to its lowest level since April 2009, according to a new survey.
The Conference Board said today that its Consumer Confidence Index dropped to 44.5, down from a revised 59.2 in July.
It was the lowest level since April 2009 when the reading was 40.8. The level was far below the 53.3 that analysts had expected.
A reading above 90 indicates the economy is on solid footing; above 100 signals strong growth. Economists watch the numbers closely because consumer spending accounts for 70% of US economic activity.
US president Barack Obama said today he would lay out proposals to both boost US job creation and lower the country's budget deficit.
"Next week, I'll be speaking to the nation about a plan to create jobs and reduce our deficit - a plan I want to see passed in Congress," he said in prepared remarks at the annual conference of the American Legion, a veterans organization.
Meanwhile, US housing prices rebounded in the second quarter over the previous quarter, but were still lower than a year earlier and remain at 2003 levels, according to the S&P/Case-Shiller index, which was released today.
On a seasonally adjusted basis, home prices were virtually unchanged in June over May, losing just 0.1% on the Case-Shiller national index, showing the sluggishness of the sector's recovery despite low interest rates.
On an unadjusted basis, there was a 1.1% pickup in June over May and a 3.6% quarter-to-quarter jump, suggesting a bottoming out of the second trough of the "double-dip" price slump of the housing sector.
But the index in the second quarter, at 130.12, was more than eight points below the second quarter of 2010, and roughly level with January-March 2003.
In between, it peaked at 189.93 in the second quarter of 2006, and since then has plunged with the collapse of the housing market.
"This month's report showed mixed signals for recovery in home prices. No cities made new lows in June 2011, and the majority of cities are seeing improved annual rates," said S&P's David Blitzer.
But, he pointed out, the national index was down 5.9% compared to a year ago.
The strongest of 20 key city real estate markets followed in the index were Washington, Denver and Boston, while the weakest were Detroit, Las Vegas, Miami and Phoenix.
