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Index: Consumer confidence drops to lowest level since May

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Consumer confidence dropped last week as Americans’ view of the economy plunged to the lowest level since May, Bloomberg reported.

The Bloomberg Consumer Comfort Index was minus 46.8 in the period ended July 24, , compared with minus 43.3 the prior week. A reading of 100 signals full confidence in all categories of the index.

Six percent of those surveyed said the economy was in good shape, the fewest since April 2009.  

Seniors and the unemployed were among those with the most negative outlooks. Unemployment above 9 percent, falling home prices and a rebound in gasoline costs may be affecting sentiment overall.

“The stuff in Washington is really weighing on people,” said Brian Jones, an economist at Societe Generale, in an interview with Bloomberg.

Sentiment among Democrats and political independents fell last week to the lowest level in two months, while that for registered Republicans climbed to the highest level since April, the report showed.

The indicator comes at odds with another economic indicator today. The number of Americans making new claims for unemployment benefits dropped below the 400,000 level last week for the first time since early April.