Consumer Confidence Dips in September

Consumers' confidence in the present economic situation dipped in September after some improvement in August, according to a report released today by the Conference Board.

The Conference Board Consumer Confidence Index stands at 53.1, down from 54.5 in August. The Present Situation Index decreased from last month's 25.4 down to 22.7 for September. The Expectations Index dipped to 73.3 this month from 73.8 in August. (The index was 100 in 1985.)

Those claiming business conditions are "bad" increased to 46.3% from 44.6%, while those claiming conditions are "good" increased to 8.7% from 8.5%. Consumers also lowered their expectations of the job market - those claiming jobs are "hard to get" increased to 47% from 44.3%, while those claiming jobs are "plentiful" decreased to 3.4% from 4.3% in August.

Consumers who expected more jobs in the months ahead edged down to 17.9% from 18%, while those expecting fewer jobs remained the same at 23.1%. The proportion of consumers expecting an increase in their incomes increased slightly to 11.2% from 10.8%.

Consumers' short-term outlook was also slightly more pessimistic. Those anticipating an improvement in business conditions over the next six months decreased to 21.3% from 22.2%, while those expecting conditions to worsen decreased to 15% from 15.2%.

Lynn Franco, Director of The Conference Board Consumer Research Center said, "Consumer Confidence, which had improved in August, retreated slightly in September. The Present Situation Index decreased, as consumers viewed both current business conditions and the labor market less favorably than last month. While not as pessimistic as earlier this year, consumers remain quite apprehensive about the short-term outlook and their incomes. With the holiday season quickly approaching, this is not very encouraging news."

The monthly Consumer Confidence Survey is based on a representative survey of 5,000 households.


Sources:
Bloomberg
The Conference Board