NEW YORK (AP) — Stocks fell Tuesday after consumer confidence dropped to the lowest level since April 2009. Retailers and other companies that depend on consumer spending had the steepest losses.
The drop in the Conference Board's Consumer Confidence Index was far worse than analysts expected and only half of the level that indicates a healthy economy. The index plunged 15 points to 44.5 in August, well below the estimate of 53.3 from economists surveyed by FactSet. The index is usually at 90 or above when the economy is strong.
The sharp fall in the measure of how U.S. consumers feel about the economy could mean weaker sales for retailers and makers of consumer goods like clothes and shoes. Retailers are in the midst of the critical back-to-school shopping season, which can account for as much as 25 percent of their annual revenue.
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