Consumer Confidence Falls In September

Fewer Americans reported being optimistic about economic recovery in September, as the latest unemployment rate increased and foreclosures continued to rise.

The most recent report shows the Consumer Confidence Index - measured by Thomson Reuters/University of Michigan - dropped from 68.9 recorded in August to 66.6 this month. According to the report, the current rate is at a year-low and far below what analysts initially expected.

Economists use the confidence index to determine how willing Americans are to participate in consumer spending, which accounts for roughly 70 percent of the economy. However, analysts have been saying for months that job creation plays a central role in boosting consumers' optimism and confidence in the economy. Confusion surrounding the Bush tax cuts has also been named a factor.

"Already cautious consumers are even more cautious," Jim O'Sullivan, MF Global chief economist, told the Washington Post. "Consumer spending has certainly been a weak part of the recovery, and there is no sign in these numbers of any sudden change in that."

In addition to the rising unemployment rate, most credit card lenders reported an increase in the amount of debt they wrote off last month, indicating that Americans are not receiving the debt relief they need to meet their financial obligations.