U.S. stocks edged down Friday on concerns about consumer spending after an index of consumer sentiment fell to a 16-year low and Best Buy warned that shopper traffic dropped after the year-end holidays.<\/p>\n
A Reuters\/University of Michigan index of consumer sentiment for February dropped to 69.6 in early February from a reading of 78.4 in January. That is the lowest since February 1992, leaving the index at a level that has characterized past recessions.<\/p>\n
Consumer spending, an important driver of economic growth, faces headwinds from the decline in home prices and workers’ fears about layoffs, economists say.<\/p>\n
And the New York Federal Reserve’s Empire State index tracking general business conditions in the region tumbled nearly 21 points to a negative 11.7 reading, falling below zero for the first time since May 2005.<\/p>\n