By Ruth Mantell, MarketWatch
WASHINGTON (MarketWatch) — Consumer sentiment is the lowest since December, with job concerns hitting results, according to data released Friday by the University of Michigan and Thomson Reuters.
The consumer-sentiment index fell to a preliminary July reading of 72 from 73.2 in June. Economists polled by MarketWatch had expected a July reading of 73. See economic calendar.
A tough employment market is taking a toll on consumers. Last week the U.S. Department of Labor reported that the economy gained only 80,000 jobs in June. Read more about jobs.
The sentiment gauge, which covers how consumers view their personal finances as well as business and buying conditions, averaged about 87 in the year before the most recent recession. Economists watch sentiment data to get a feel for the direction of consumer spending. In addition to weak labor-market conditions, analysts say consumers are also concerned about financial problems in Europe and U.S. fiscal uncertainty.
According to the UMich report, a barometer of consumers’ expectations declined to 64.8 in July from 67.8 in June. Meanwhile, a gauge of their views on current conditions increased to 83.2 from 81.5.
Elsewhere Friday, the U.S. Department of Labor reported that U.S. wholesale prices rose in June on higher costs for food, trucks and other items. Read more about wholesale prices.
Ruth Mantell is a MarketWatch reporter based in Washington.
