Market jitters hit US confidence

http://news.bbc.co.uk/go/rss/-/1/hi/business/6967193.stm

Version 0 of 1.

Volatile financial markets and problems in the housing market took their toll on consumer confidence in the US this month, the Conference Board has said.

Its Consumer Confidence Index fell to 105.0 in August from 111.9 in July, although that was still better than had been expected.

The fall takes the index back to around the level it hit in June.

The index is seen as a key indicator of consumer spending, which accounts for two-thirds of the US economy.

The Conference Board blamed softening business conditions and signs of a downturn in the labour market for the fall.

But it also pointed to Wall Street and wider economic issues.

"The volatility in financial markets and continued sub-prime housing woes may have played a role in dampening consumers' spirits," said Lynn Franco, director of the Conference Board Consumer Research Center.