Thread: Consumer Confidence Skidded Unexpectedly During October

Consumer Confidence Skidded Unexpectedly During October

Published: Tuesday, 27 Oct 2009 | 10:12 AM ET
By: Reuters

U.S. consumer confidence fell to lower-than-expected levels in October, amid growing concerns that job market conditions will worsen in the near term, according to a report released on Tuesday.

The Conference Board, an industry group, said its index of consumer attitudes slipped to 47.7 in October from a revised 53.4 in September, which was originally reported as 53.1.

Analysts polled by Reuters had forecast a reading of 53.1.
The index level is the weakest since July, when it stood at 47.4, according to the Conference Board.

The present situation component of the survey dipped to 20.7 in October from 23.0 the prior month — its lowest reading in 26 years.

"The short-term outlook has also grown more negative, as a greater proportion of consumers anticipate business and labor market conditions will worsen in the months ahead," said Lynn Franco, director of The Conference Board Consumer Research Center, in a release.

More Americans surveyed said jobs were "hard to get" in October, with that gauge rising to 49.6 percent from 47.0 percent in September.

Those claiming jobs "plentiful" fell to 3.4 percent from 3.6 percent last month.

"Consumers also remain quite pessimistic about their future earnings, a sentiment that will likely constrain spending during the holidays," Franco said.

A reading above 90 means the economy is on solid footing. Above 100 signals strong growth.

The index has seesawed since hitting a historic low of 25.3 in February.

Economists expect holiday sales to be at best flat from a year ago, which saw the biggest declines since at least 1967 when the Commerce Department started collecting the data.

The Consumer Confidence Index survey, which was sent to 5,000 households, had a cutoff date of Oct. 21.
http://www.cnbc.com/id/33491509

And yet there are some in the Obama administration patting themselves on the back,since in their eyes the economy is recovering. It will take longer then this for it to recover. And even if the stock market edges up that is not an indication that economy is better. We still have high unemployment and climbing.