Confidence among US consumers fell in September to a four-month low as Americans grew less upbeat about the outlook for employment.
The Conference Board’s index declined to 79.7 from a revised 81.8 a month earlier that was stronger than initially estimated, the New York-based private research group said today.
Uneven employment growth and limited wage gains are keeping consumer purchases, which make up about 70% of the world’s largest economy, from accelerating.
At the same time, a pickup in household wealth reflecting improved property values and higher stock prices may help ensure Americans will not cut back.
The Conference Board’s barometer of consumer expectations for the next six months fell to 84.1 after 89 a month earlier. A gauge of present conditions improved to 73.2 in September from 70.9 a month earlier.
The fewest respondents since March said they expected their incomes to rise. The share dropped to 15.4% in September from 17.5% a month earlier. The share of Americans who said jobs would become more plentiful in the next six months fell to 16.9% from 17.5%.
But at the same time, the gap between those who said work opportunities are currently scarce, and those who said they are easy to get, shrank to the lowest since September 2008.
Recent improvements in the US labour market have been uneven. Employers created 169,000 jobs in August, and the prior two months’ gains were revised down, Labor Department figures showed this month. The unemployment rate dropped to 7.3%, a four-year low, in part because workers left the labour force.
The lack of more progress in the job market was behind the decision of Federal Reserve policy makers to refrain from reducing the monthly pace of monthly stimulus. Central bankers said they need to see more evidence of sustained economic strength.
US city home prices see biggest rise in seven years
Home prices in 20 US cities in the 12 months up to July saw the biggest gains in more than seven years, helping boost owner equity.
The S&P/Case-Shiller index of property values in 20 cities increased 12.4% from July 2012, matching analysts forecasts.
The gain was the biggest year to year advance since February 2006, a report from the group showed today in New York. On a month-to-month basis, price appreciation slowed.
Gains in US home and stock values are contributing to increases in household wealth that are helping bolster consumer spending, the biggest part of the economy.
But analysts say the appreciation in property values may cool over the rest of the year as mortgage rates close to a two-year high temper demand.
Another home-price gauge also showed improvement. Values climbed 1% in July from the prior month after a 0.7% increase in June, according to figures from the Federal Housing Finance Agency.
The S&P/Case-Shiller index is based on a three-month average, which means the July figure was also influenced by transactions in June and May. The July reading compared with June’s 12.1% annual advance.
The month-over-month gains were led by a 2.5% jump in Las Vegas. Property values fell in Minneapolis and Cleveland. Unadjusted prices climbed 1.8% in July from the previous month.
All 20 cities in the index showed a year-over-year gain, led by a 27.5% surge in Las Vegas. San Francisco, Los Angeles and San Diego also showed gains in excess of 20%.
