The Conference Board's Consumer Confidence Index – a monthly reading of the American temperature — fell 11.5 points in October, the fourth consecutive monthly decline. The Index now stands at 85.5, the lowest reading since February 1994 and a drop from the 97.0 in September.
The Board's Expectations Index, a barometer of future economic activity, dropped from 78.1 to 70.8.
Consumers'assessment of current conditions was much less positive than in September. Those rating current business conditions as “bad” rose from 18.3 percent to 20.6 percent. Those rating conditions as “good” declined from 22.3 percent to 18.9 percent. Consumers claiming jobs are “hard to get” rose from 18.8 percent to 20.7 percent. Those reporting jobs are “plentiful” fell from 27.1 percent to 21.0 percent.
Consumers'outlook for the next six months continues to deteriorate, according to The Conference Board report. Those expecting an improvement in business conditions over the next six months increased from 15.7 percent to 18.0 percent. But those anticipating conditions to weaken rose from 15.8 percent to 20.3 percent.
The Consumer Confidence Survey is based on a representative sample of 5000 U.S. households. It's conducted for The Conference Board by NFO WorldGroup, a member of The Interpublic Group of Companies.
“The economic outlook is becoming increasingly pessimistic, with consumer sentiment continuing to fall,” says Lynn Franco, director of The Conference Board's Consumer Research Center. “Widespread layoffs and rising unemployment do not signal a rebound in confidence anytime soon. With the holiday season quickly approaching, there is little positive stimuli on the horizon.”
As an independent membership organization, The Conference Board conducts research, makes forecasts, assesses trends and publishes information and analysis.