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Sat 07 Jul 2009US consumer confidence drops

SENTIMENT AMONG US consumers, whose spending is critical to an economic recovery, dropped in July after four months of gains as unemployment approached 10 per cent.

The Reuters/University of Michigan preliminary index of consumer sentiment fell by more than forecast to 64.6 from 70.8 in the prior month. A separate report from the US Commerce Department showed the trade deficit unexpectedly narrowed in May to the lowest level in almost a decade.

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