Says Lynn Franco, Director of The Conference Board Consumer Research Center: "The Consumer Confidence Index is now at its lowest level in nearly two years (Nov. 2005, 98.3). Weaker business conditions combined with a less favorable job market continue to cast a cloud over consumers and heighten their sense of uncertainty and concern. Looking ahead, little economic improvement is expected and with the holiday season around the corner this is not welcome news."
Consumers' appraisal of current-day conditions waned further in September. Those claiming conditions are "good"decreased to 25.7 percent from 26.2 percent, while those saying conditions are "bad" increased to 17.9 percent from 16.3 percent. Consumers were also less positive in their appraisal of the labor market. The percentage of consumers saying jobs are "hard to get" increased to 22.1 percent from 19.7 percent. Those claiming jobs are "plentiful"decreased to 25.7 percent from 27.5 percent in August.
Consumers' expectations for the next six months weakened further in September. Those anticipating business conditions to worsen rose to 11.8 percent from 10.2 percent. However, those anticipating business conditions to improve edged up to 15.6 percent from 15.0 percent.
The outlook for the labor market was mixed. The percent of consumers expecting more jobs in the months ahead inched up to 13.3 percent from 12.9 percent, while those anticipating fewer jobs increased to 18.7 percent from 15.2 percent. The proportion of consumers expecting their incomes to increase in the months ahead improved moderately to 20.4 percent from 19.8 percent.
