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Confidence among U.S. consumers declined in December from close to a 15-month high, a private survey showed.
The University of Michigan's preliminary index of sentiment fell to 90.2 from 92.1 in November. The gauge rose to 93.6 in October, the highest since July of last year, and has averaged 88.1 since monthly data were first compiled in 1978.
Americans are getting a smaller boost from declining gasoline prices, and the slumping real estate market is making them feel less wealthy, economists said.
The report may raise doubts about the strength of consumer spending, which accounts for about two-thirds of the economy, as Christmas approaches.
``There's concern about the path of retail sales during the holiday season,'' Joseph Brusuelas, chief U.S. economist at IDEAglobal in New York, said before the report. ``You can expect people to spend a bit more frugally and a bit more smartly. They'll be looking for bargains that may not come.''
The Michigan index was expected to fall to 92, according to the median estimate of 62 economists in a Bloomberg News survey. Forecasts ranged from 90 to 95.5.
Employers added 132,000 workers to their payrolls in November, more than economists had forecast, a Labor Department report showed today. The gain in employment followed a 79,000 increase in October that was less than previously estimated. The jobless rate rose to 4.5 percent from a five-year low of 4.4 percent the prior month. |
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