US Consumer confidence stays at 2-year low in September

US consumer confidence stays at its 2-year low in September as well because of high unemployment rate and lower business outlook in the economy. The consumer confidence touched as low as 45.2 in August which was the lowest since April 2009 when the whole US economy was into recession, as per Bloomberg data. The consumer confidence did not show any improvement in last one month mainly because of high unemployment rate. US economy is still struggling to create ample jobs and unemployment rate also stayed at the record low level.

The consumer confidence is a very good indicator of Consumer spending as well as GDP growth. Stagnation of consumer confidence increases the possibility that the US economy may stagnate or the economic growth may be lower in the coming quarter. After the last recession, US economy is still struggling to find the pace and the current economic growth is very fragile amid the renewed debt crisis and global slowdown fear.