Consumer Mood Sours
The growing financial crisis is taking its toll on consumer confidence in the economy, which dropped from a seven-month high earlier this month.
In the past two weeks, the University of Michigan/Reuters monthly consumer sentiment index for September dropped to 70.3 from a mid-month preliminary reading of 73.1.
The rebound in confidence began fading amid reports of turmoil on Wall Street, though details of the crisis surfaced too late in the month to offset earlier gains, the report said.
Second-quarter gross domestic product grew by 2.8 percent, below an initial estimate of 3.3 percent, the Commerce Department reported Friday.
The gains reflected an upturn in exports, personal expenditures, government spending and nonresidential real estate, the report said. Imports, corporate profits, profits of financial corporations, and foreign income by U.S residents declined over the first half of the year.