A measure tracking the economic outlook dropped to 41.5 this month, the weakest since October, from 45 in August, data from the Bloomberg Consumer Comfort Index showed today. The reading was the second-lowest since January 2012.
Twenty percent of those surveyed saw the economy improving, the smallest share since October, when the partial shutdown of the federal government rattled households. Bloomberg's weekly sentiment index improved as consumers grew more upbeat about their financial well-being on the heels of stock-market gains that may keep spending from faltering.
"Confidence still is subpar, marked by deep and persistent concerns about the national economy overall," said Gary Langer, president of Langer Research Associates LLC in New York, which produces the data for Bloomberg. "Stagnant incomes and lingering weakness in the job market are real challenges."
Bloomberg's weekly sentiment measure climbed by 0.7 point to 37.2 in the period ended Sept. 14. The gauge of personal finances advanced to 54.3 last week, the highest since April 2008, from 53. The buying-climate index rose to 33.4 from 31.2, while the measure of the economy fell to the lowest level since the period ended June 1.
Fewer Claims
A report from the Labor Department today showed fewer Americans than forecast filed applications for unemployment benefits last week, a sign the labor market continues to strengthen. Jobless claims decreased by 36,000 to 280,000 in the week ended Sept. 13 from 316,000 in the prior period. The median forecast of economists surveyed by Bloomberg called for decrease to 305,000.
Housing starts slumped in August after reaching the highest level in almost seven years, pointing to an uneven pickup in the U.S. residential real-estate market that will limit its contribution to economic growth, figures from the Commerce Department also showed.
Beginning home construction fell 14.4 percent, the most since April 2013, to a 956,000 annualized rate following July's revised 1.12 million pace that was the strongest since November 2007. Last month's reading was lower than the most pessimistic forecast of any economist surveyed by Bloomberg. Building permits also fell.
Stock rose as investors assessed the mixed data on housing and employment. The Standard & Poor's 500 Index climbed 0.2 percent to 2,005.88 at 9:40 a.m. in New York.
Unemployed's Confidence
A pickup in hiring this year is brightening spirits for the jobless. Today's comfort index showed sentiment among unemployed Americans increased to 34.3 last week, the highest since the end of 2007, from 31.5.
Rising property values are also boosting homeowner confidence as the gauge increased to 41.3, its second-best reading since the recession started in December 2007.
The gap between the highest- and lowest-income Americans persisted, with the comfort index for households earning $50,000 or more rising to 47.3 from 45.9 a week earlier. Sentiment among those earning $100,000 or more climbed, while confidence fell for lowest-income earners.
Average hourly earnings were up 2.1 percent in the 12 months ended in August, close to the average of the last six years and barely above the rate of inflation, according to Labor Department data.
Comfort among adults 18 to 34 years old rose to 37.5, recovering ground lost in the week prior when the gauge fell to the lowest level since May.
The Bloomberg Comfort Index has been presented on a scale of zero to 100 since May, rather than the previous minus 100 to 100, with the midpoint shifting to 50 from zero. The change doesn't affect the measures' relationship to each other or their correlation with other economic indicators.
Historical data have been revised and analysis of trends, values and other variables haven't been affected.
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