Sales Stagnate
Sales at U.S. retailers stagnated in June as rising unemployment held consumers back, another report showed today. The 0.1 percent increase reported by the Commerce Department in Washington today compared with the median forecast of a 0.1 percent drop in the Bloomberg News survey of 80 economists. Excluding auto sales, purchases were little changed, the weakest performance since July 2010.
Stocks rose for a second day after the reports. The Standard & Poor's 500 Index climbed 0.1 percent to 1,319.14 at 11:10 a.m. in New York.
Even as consumers' sentiment about the economy waned, they became more optimistic about their own finances. The gauge of personal finances increased to minus 1.6, the highest level in 12 weeks, from minus 8.4. The buying climate measure rose to minus 46.7, the highest level since the end of January, from minus 47.1 the prior week.
The index also showed "faint signs of life" among higher- income Americans, "underscoring the economic divide in consumer views," Gary Langer, president of Langer Research Associates LLC in New York, which compiles the index for Bloomberg, said in a statement.
Confidence among Americans making more than $100,000 climbed to minus 1.4, the highest level since May 8, while optimism fell among households making less than $25,000.
Education Level
Sentiment among college graduates improved to minus 27.8, while confidence among high school graduates fell to minus 58.4.
Confidence among consumers with a full-time job rose slightly to minus 32.3 from minus 32.6 the week before, while optimism among consumers working part time decreased to minus 45.6 from minus 40.6 the prior week.
The struggling labor market may be prompting households to cut back. Consumer spending stagnated in May, the Commerce Department reported on June 27.