U.S. Economy: Consumer Optimism Drops to 9-Month Low

BY

Americans, rattled by higher gasoline prices and a slowing housing market, were less confident in August than at any time in the past nine months.

The Conference Board's index of confidence dropped to 99.6 from 107.0 in July, The decline was the biggest since last September, after Hurricane Katrina battered the Gulf Coast.

Consumer concerns about inflation and the labor market may hold down the spending that accounts for 70 percent of the economy.

Minutes to be released today of the Federal Reserve's meeting on Aug. 8, when it ended a two-year campaign of interest-rate increases, may show officials were concerned that the risks of slowing growth outweighed the dangers of accelerating inflation.

Stocks fell following the report.   Gold also follows.