Economy, Income | featured news

Americans turned less optimistic about the economy in early February on worries about falling income even as their outlook on the jobs market rose to a record high, a survey released on Friday showed.

U.S. consumer confidence bounced back from a 2-1/2 year low in November as apprehension about job and income prospects eased, according to a private sector report released Tuesday.

Americans earned less last month, the first decline in nearly two years. With less income, consumers could cut back on spending and weaken an already-fragile economy.

U.S. consumer confidence fell in March after hitting a three-year high in the prior month as expectations about jobs and income growth worsened.

Consumer confidence rose in February to its highest point in three years as Americans feel more optimistic about their income prospects and the direction the economy is headed.

The U.S. economy grew more than previously calculated in the third quarter, led by stronger consumer spending and fueled by labor income gains that may stoke demand into 2011.

Consumer spending rose at the strongest pace in four months in July, supported by a small gain in incomes, offering hope that consumers will be able to keep contributing to a modest recovery.

Authorities in Europe and the U.S. are turning to “stealth taxes” to avoid drawing attention to the tightening fiscal noose.