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"Weak sentiment could limit the rise in consumption through the holiday season and right into winter.
But Reuters reported that the Treasury had canceled a bond sale scheduled for Aug. 18, reflecting weak sentiment.
Weak sentiment bodes poorly for corporate profits, as consumer spending accounts for about two-thirds of activity in the economy.
Speaking to MPs on the treasury select committee, Saunders warned it was now a major issue and compounding the already weak sentiment on currency markets towards sterling.
Charlie Mayfield, the employee-owned group's chairman, blamed discounting by rivals, increased capital expenditure on new stores and weak sentiment among hard-pressed consumers for the reverse.
"The mooted collapse of Comet will come as little surprise given weak sentiment and the shift towards online channels for consumer electronics," said Jon Copestake, retail analyst at the Economist Intelligence Unit.
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If the voices were weak, the sentiment was still defiant.
The ministry said the slide in Japan's yen had hurt exports and weakened weak consumer sentiment.
Despite weak sector sentiment, the upside to our unchanged target price [of 825p] is starting to look more compelling.
Money flowed into Treasury notes again after the weak consumer sentiment reading and a report from the Labor Department showed consumer prices rose slightly in August.
Kohl's said earnings for this fiscal year could fall short of Wall Street estimates because of weak consumer sentiment, but investors shrugged that off because of the company's pattern of understated forecasts.
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