US Economy Takes a Downward Turn Amidst Concern Over Jobs

Confidence among US consumers' sank in the month of June over concerns regarding jobs and means of livelihood.

Stocks plunged as the confidence data, combined with Conference Board figures showing China’s economic outlook improved less than previously estimated, added to concern the global economy is slowing.

Due to the rapid unemployment and the turmoil caused in the financial sector due to the European debt crisis, household spending has taken a downward trend.

According to Richard DeKaser, chief economist at Woodley Park Research in Washington, “What we need are consistent job gains, not just a month or two. Until we get that, I don’t think we’re going to see any gains in consumer confidence.”

The Standard & Poor’s 500 Index dropped below its lowest closing level of the year, and the yield on two-year Treasury notes fell to a record low. The S&P 500 decreased 2.6 percent to 1,046.88 at 12:47 p.m. in New York. The two-year Treasury note’s yield slid as low as 0.5857 percent.