U.S. Consumer Comfort Drops on Weakest Buying Views Since June

(Bloomberg) --

U.S. consumer comfort fell for a third week as views of the buying climate dimmed to the weakest level since June, adding to signs consumer spending will moderate after the strongest quarter since 2014.

The Bloomberg Consumer Comfort Index slipped to 61.7 in the week ended Sept. 22 from 62.7 the prior week, data released Thursday show. The buying gauge eased to 54.3 from 54.5 with views on personal finances and the national economy also posting declines.

While the comfort gauge remains within reach of its 18-year high in July, signs of pessimism indicate a tempering in the pace of consumer spending, which accounts for three-quarters of gross domestic product in the world’s largest economy and has been the main prop for expansion as sluggish global growth and trade policy hinder business investment.

The weakness also follows this week’s release of the Conference Board’s Consumer Confidence index, which tumbled in September by the most in nine months. The preliminary University of Michigan gauge of consumer sentiment rebounded slightly last month from a steep decline in August, and the final reading due Friday is forecast to show that the increase was slightly bigger than initially reported.

To contact the reporter on this story: William Edwards in Washington at wedwards29@bloomberg.net

To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Jeff Kearns, Vince Golle

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