Consumer confidence at 10-month low
Saturday,  June 9, 2007 3:32 AM
WASHINGTON (AP) -- Consumer confidence tumbled to a 10-month low as gyrating gasoline prices and persistent problems in the housing market gnawed at people's sense of economic well-being.

The drop shown in the latest RBC Cash Index was surprising given the healthy state of the nation's job market, which is usually an important factor coloring consumers' perceptions of how the economy and their own financial fortunes are faring.

But worries about gasoline prices, the yearlong housing slump and the sluggish economy are taking a toll on confidence, economists said.

"There is too much uncertainty. That is the mind-set of consumers right now," said Brian Bethune, economist at Global Insight.

The RBC Cash Index showed consumer confidence dropped to 81.4 in June. That was weaker than May's 87.1 and was the worst showing since August, when fears about record-high energy prices gripped consumers. The index is based on the results from the international polling firm Ipsos.



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