Consumer confidence falls in September on job market worries

Consumer confidence falls in September on job market worries

The Conference Boardês Consumer Confidence Index, which had increased in August, declined in September because of a less optimistic assessment of the job market. The index now stands at 86 (the base is 100, in 1985), down from 93.4 in August. The fall in the index came after four consecutive months of improvement.

–A less positive assessment of the current job market, most likely due to the recent softening in growth, was the sole reason for the decline in consumersê assessment of present-day conditions,” said Lynn Franco, director of economic indicators at the Conference Board. –Looking ahead, consumers were less confident about the short-term outlook for the economy and labor market, and somewhat mixed regarding their future earnings potential. All told, consumers expect economic growth to ease in the months ahead.”

Consumersê optimism about the short-term outlook declined considerably in September. The percentage of consumers expecting business conditions to improve over the next six months fell from 20.8 percent to 18.6 percent, while those expecting business conditions to worsen rose from 9.9 percent to 12 percent.