A survey says consumers feel gloomier. Here's why how people feel moves the economy.

Originally reported as: “Consumer confidence index slips as households turn cautious on spending”

A closely watched survey showed that consumer confidence, meaning how optimistic people feel about their finances and the economy, dipped this period. These surveys ask ordinary households how they feel about their jobs, income, and whether now is a good time to spend. Confidence matters because feelings drive behavior. When people feel uneasy, they tend to spend less and save more, which can slow the economy. Economists watch these readings as an early hint of where spending may be headed.