NEW YORK (TheStreet) -- Americans aren't happy about their jobs or incomes these days. Consumer confidence, as measured by the U.S. Consumer Sentiment Index, dropped 71.8 in June, according to the Reuters/University of Michigan Surveys of Consumers. That's much worse than May's reading of 74.3.
The gloomy report came as a surprise to some analysts who were expecting a slight uptick to 74.5. Consumer sentiment in May rose marginally, but today's data suggests that despite easing gas prices, consumers may be entering the summer doldrums.
Some 500 households responded to questions about their financial well-being and attitude towards the economy. The report compiles a number that acts as a rough gauge of consumer spending. If consumers are happy, they're more likely to spend. Consumption is a major component of the U.S. growth domestic product, which the Federal Reserve expects to increase in the latter half of the year.
The markets have about two weeks before the end of the Fed's quantitative easing efforts. The Fed has just about exhausted everything in its toolbox and lawmakers are stuck in a rut over how to deal with the deficit.
Downbeat results in consumer confidence often means worsening inflation and unemployment levels.
