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Confidence Takes A Hit And Factories Ease Up To Lengthen Soft Patch Aug. Retail Sales Also Weak Oil prices, tired shoppers acting as brake on hiring. The solution? More jobs.(A)

Investor's Business Daily

| September 01, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: JED GRAHAM

Consumer confidence weakened, Midwest business activity slowed and spending at major chain stores disappointed in August, reports out Tuesday showed.

The data reinforced questions about the economy's momentum, sending 10-year Treasury yields sinking six basis points to 4.12%, the lowest level since April 1.

The Conference Board's consumer confidence index fell to 98.2 last month, down sharply from July's two-year-high 105.7 amid dimmer views of current and future job prospects.

Meanwhile, the National Association of Purchasing Management-Chicago said its gauge of regional business and factory activity fell to 57.3 from 64.7 in July, reflecting a more moderate expansion.

And the International Council of Shopping Centers and UBS said big retailers' same-store sales last week rose just 2.6% vs. a year ago, the weakest gain since July 2003.

Redbook Research said August same-store sales rose 1.8% vs. a year ago, missing the 2.5% target.

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