Many Analysts Predict The Economy’s Growth Will Slow In The Second Half Due To Eroding Consumer Confidence

So much for optimism. A dramatic drop in consumer confidence sent stocks plunging Tuesday, June 29, and left a key index at its lowest level of the year, heightening fears that the economic recovery is stalling.

The nation is in no mood to spend its way back to growth, but businesses have been cautiously building up inventories to prepare for increasing demand as the economy improves. Now they’re left with a question: Who’s going to buy all the cars, dishwashers and clothes heading to stores and showrooms?

The Consumer Confidence Index came in at 52.9 in June, a jarring decline from 62.7 in May, according to a survey released Tuesday, June 29, by the Conference Board, a private research group. It was the biggest drop since February and came on top of…

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