Job worries weigh on US consumer

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A perceived weakening of economic growth and employment prospects hurt US consumer confidence in June, a report has indicated.

The Conference Board's index of consumer confidence fell five points to 103.9 - a 10-month low - reversing an upbeat outlook in May.

The report comes after government figures showed a continuing slump in the US housing market.

The US central bank, the Fed, will meet Wednesday to set interest rates.

They are widely expected to remain unchanged at 5.25% amid uncertainty about the course of the US economy.

Perceived softening

"A perceived softening in present-day business and employment conditions are the major reasons behind this month's pull-back in confidence," said Lynn Franco, a director at The Conference Board.

"Looking ahead, consumers remain rather subdued about short-term economic prospects."

Last month, shoppers were much more upbeat about the US economy despite high petrol prices.

The consumer outlook is closely monitored by analysts as consumer spending accounts for about two-thirds of US economic activity.

The confidence index is based on a survey of 5,000 US households.