Consumer sentiment and the slowing recovery

Recent reports of a slowing economic recovery have begun to affect consumers' attitudes toward spending and their overall finances, a new study shows.

The Discover U.S. Spending Monitor, which tracks consumer sentiment, recorded its largest drop ever in June. The monitor, a daily poll of 8,200 consumers, fell 4.4 points from May to the lowest level since July 2009.

More than 60 percent of U.S. adults surveyed rated the economy as "poor," and nearly 56 percent said the economy is getting worse. For the first time since July 2009, more than half of respondents reported their personal finances are worsening, the poll found.

"In the absence of good economic news, such as on the jobs front or with housing prices, more Americans are growing pessimistic about their long-term financial outlook and the outlook for America's economy generally," Julie Loeger, Discover's senior vice president of brand and product management, said.

Consumer confidence is a critical part of the economic recovery, driving spending decisions on everything from new clothes to new homes. What do you think: Do these trends hold true in the Charlotte area?

In other economic news:

Businesses with less than 20 employees created 45,000 new jobs across the U.S. in June, according to Intuit Payroll's Small Business Employment Index. That's a growth rate of 0.2 percent, or 2.7 percent annually. Small-business hiring grew 0.4 percent in North Carolina in June, faster than the average 0.2 percent for the South Atlantic region, the report found. Nationally, pay and hours worked increased, too, Intuit found.

An economic index from N.C. State University rose in May, the first monthly gain since February. Improvement in building permits, manufacturing work hours and manufacturing earnings drove the increase, according to the report from economist Mike Walden. The index was down slightly from a year ago - but the monthly increase suggests the economy could pick up in the second half of the year, the report said.