US consumer confidence dips further

NEW YORK - Consumer confidence in the US cooled this month as Americans worried about their overall financial situation, according to the latest index of consumer attitudes and spending.

The CASH (consumer attitudes and spending by household) index put out by RBC Capital Markets (investment banking division of the Royal Bank of Canada - the country’s biggest bank) here Thursday said economic attitudes soured across the board in the US.

Consumers viewed the current economic situation negatively and expressed pessimism about the future. “Although numerous economic indicators are trending in a favourable direction, it is evident that ‘less-bad’ is just not good enough for US consumers,” RBC Capital Markets US economist Tom Porcelli said in a statement here.

“This month’s reading suggests that consumers continue to feel financial pressure from recent volatility in stocks and a soft job market,” Porcelli added.

A monthly national survey of consumer attitudes in the US, the RBC Index for February 2010 stands at 39.4, down 18.9 points from 58.3 in January.

The drop in the index is attributed to consumers’ evaluations of the state of their local economies as well as their pocketbooks, a survey statement by the bank said.

Currently, 46 percent Americans think their local economy is weak - up from 40 per cent in January.

About their personal finances, two-thirds of Americans (65 per cent) said they are less comfortable than they were six months ago - up from 62 per cent in January.

Consumers’ concerns about their local economies and personal finances are driving the downturn in the expectations index, the survey statement said.

Currently, only one-third of Americans (34 per cent) expect their local economy to be stronger six months from now - down from 38 per cent in January.

Nearly 13 per cent of Americans expect their personal finances to be weaker six months from now, compared to 11 per cent in January, according to the survey.

As for the jobs index, two-thirds of Americans (67 per cent) reported that someone in their close circle have lost their job in the past six months - up from 62 percent in January.

Only fewer than one-third of consumers (29 per cent) are confident that they or someone in their circle will not lose their job in the next six months - down from 37 per cent in January. There was also slide in the consumer investment confidence index, with 57 percent Americans saying they are less confident about investing for the future - up from 54 percent last month.