US consumer confidence in decline

Consumer spending has been sluggish

Job and salary fears have dented US consumer confidence, with more people saying jobs are harder to come by in a slowing economy.

Consumers were more pessimistic about economic prospects in October than the month before, the Conference Board survey of 5,000 households said.

More people were worried about their incomes and new jobs being created.

Economic growth fell to 1.6% in the three months to September, the lowest rate of increase for three years.

'Moderate expectations'

The Federal Reserve has forecast "a moderate pace of growth" in the economy in the near future.

The economic picture has been affected by a slowing housing market, sluggish consumer spending and oil prices, which despite recent falls, remain historically high.

Although consumers were less certain about current economic prospects, their longer-term outlook was slightly brighter.

The number of people expecting conditions to improve over the next six months rose in October.

"October's dip in confidence was prompted by consumers' mixed assessment of present-day business conditions and a less favourable view of the job market," said Lynn Franco, director of the Conference Board's Consumer Research Center.

"This month's readings continue to suggest a moderate pace of growth and more of the same for the first few months of 2007."