Economy, Consumer Confidence | featured news

Consumer confidence tumbled in March as Americans turned more pessimistic about economic prospects in the short term, according to a private sector report released on Tuesday.

The US economy registers surprisingly strong consumer confidence and new home sales data, suggesting the recovery is gathering steam.

U.S. consumer confidence tumbled in December, driven lower by fears of sharp tax increases and government spending cuts set to take effect next week.

U.S. manufacturing increased slightly last month, while construction spending rose 0.6% to an annual rate of $851.56 billion. Meanwhile, October consumer confidence climbed to its highest reading since early 2008.

Americans' confidence in the economy jumped this month to the highest level since February, bolstered by a brighter outlook for overall business conditions and hiring. The Conference Board said Tuesday that its Consumer Confidence Index rose to 70.3. That's up from 61.3 in August, which was revised higher. And it's the highest reading since February, when employers added 259,000 jobs and many thought the recovery was strengthening.

Despite some recently improving economic data, consumer confidence dropped in August to its lowest level since late last year, according to a leading indicator released Tuesday.

U.S. auto sales remained soft in July and all three Detroit automakers reported sales for the month that fell slightly short of analyst estimates, as high U.S. unemployment and weak consumer confidence kept would-be buyers on the sidelines.

Consumer confidence unexpectedly rose in July as Americans were more optimistic about the short-term outlook than they were about their current conditions, according to a private sector report released on Tuesday.

Americans can't seem to shake their uneasy feeling about the economy. Consumer confidence fell in June for the fourth straight month as worries about the economy outweighed relief at the gas pump, according to a private research group.

Americans this month ratcheted up their expectations on inflation to the highest level in 10 months and consumer confidence waned, though the economic recovery was still seen on track.