Personal Finance

New York -- Consumer confidence unexpectedly dropped in August from a six-year high as Americans faced rising interest rates, according to the University of Michigan/Thomson Reuters preliminary index of consumer sentiment.

The index fell to 80.0 from 85.1 in July, which was the highest since July 2007. The median projection of 68 economists surveyed by Bloomberg called for little change at 85.2.

The outlook component fell to 72.9 in August from 76.5 in July, while current conditions dropped to 91.0 in August from 98.6 in July.

Boston – Massachusetts Gov. Deval Patrick has signed a bill authorizing a sales tax holiday in Massachusetts for the upcoming weekend of Aug. 10. The bill gives consumers a one-time break on the state’s 6.25% sales tax on any ordinarily taxed retail items individually worth up to $2,500. The break does not extend to vehicles, motor boats, tobacco, meals and utilities.

Massachusetts did not offer a sales tax holiday in 2009 but otherwise has designated one weekend in August as a sales tax holiday every year since 2004.

Surging home prices and 401K balances have millions of Americans feeling better about their personal balance sheets and the state of the economy, but Walmart’s core shoppers remain under duress and that could spell trouble for second quarter sales.
 

NEW YORK — Consumer confidence in July rose to the highest level in six years as Americans’ views of their finances and the economy improved, according to the the Thomson Reuters/University of Michigan index of consumer sentiment.

The index increased to 85.1 in July from 84.1 at the end of June. It was the highest level since July 2007.

Consumers said they were move favorable toward making purchases, including automobiles and homes.

National Retail Federation SVP for government relations David French spoke to Fox News' Stuart Varney about D.C.’s decision to pass a living wage bill requiring non-union, big box retailers to pay their employees $12.60 per hour. As a result of the bill's passing, Walmart has scrapped plans to open three stores in the District. While defenders of the bill point out that the living wage is a fair one given cost of living and the still challeneging economic climate, Varney says the District, via its council members, is turning down 2,000 jobs and French agrees.

LOS ANGELES — Virtual Piggy has integrated its youth-friendly payment system with Claire’s Stores’ e-commerce website at www.claires.com.

Progress Financial may not be directly affiliated with Walmart, but a Bloomberg story this week reveals the companies are connected in some interesting ways.

New York - A report released by Bloomberg on Tuesday said that confidence among American consumers in June surpassed expectations, climbing to the highest level in more than five years.

The Conference Board’s index rose to 81.4, beating Bloomberg forecasts of 75.1 and reaching the highest point since January 2008. The index reached 74.3 in May.