Confidence At One-Year Low

Consumer confidence took an unexpected hit in September, marking a one-year low.

The Thompson Reuters / University of Michigan preliminary index of consumer sentiment fell to 66.6 from 68.9 in August, according to Bloomberg.

It’s no wonder that the news coincides with the highest unemployment rate in 30 years. Reduced consumer spending, which accounts for 70 percent of the U.S. economy, generally results in more job losses. And certainly, those people make fewer discretionary purchases.

The drop in the consumer confidence index came as a surprise to economists, who forecasted the measure would rise to 70, according to a survey conducted by Bloomberg. It averaged 89 in the five years leading up to the recent recession.