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Job fears spook consumers on U.S. economy - survey


Tuesday February 10, 11:16 am ET

NEW YORK, Feb 10 (Reuters) - Confidence in the U.S. economy retreated in early February after reports showed a lack of new hiring, a survey showed on Tuesday, with respondents possibly influenced by the political debate over jobs.

Investor's Business Daily and TechnoMetrica Market Intelligence said their economic optimism index fell to 56.5 in February from 60.6 in January, which was a 22-month high. The gauge is based on over 900 interviews and predicts with 90 percent reliability the widely watched University of Michigan and Conference Board consumer sentiment indexes.

"The economy is still improving, but job growth has been less than expected and GDP growth in the fourth quarter was just half of the third quarter's 8.2 percent," said Terry Jones, associate editor of Investor's Business Daily.

Jones said American politics could also be influencing perceptions on the economy, with the Democrats focusing the public's attention on the lagging job market and some Republicans voicing concerns about record budget deficits.

The largest drop came from the six-month economic outlook component, a measure of how consumers feel about the economy's potential in the next six months. The component broke a four-month rising streak, declining 7 points to 55.8.

The federal economic policies component dropped 3.3 points to 50.5, and the personal financial outlook, which measures how respondents feel about their own finances six months hence, slipped 1.9 points to 65.3.

 

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