Sept. Consumer Confidence Slips to Weakest Level Since February
Tweet
Share
E-mail
The confidence of consumers in the U.S. economy fell to the lowest level since February, as the sluggish recovery and high unemployment figures weigh on shoppers in September.
The Conference Board reported Tuesday that its monthly gauge for consumer confidence fell to 48.5 in September from a slightly downwardly revised 53.2 in August. Economists had expected the reading to be much higher, at 52.5.
“September’s pull-back in confidence was due to less favorable business and labor market conditions, coupled with a more pessimistic short-term outlook,” Lynn Franco, Director of The Conference Board Consumer Research Center, said. “Overall, consumers’ confidence in the state of the economy remains quite grim. And, with so few expecting conditions to improve in the near term, the pace of economic growth is not likely to pick up in the coming months.”
The government recently said that the recession officially ended in June 2009, but consumers are obviously still worried and feeling the effects of the downturn.
The cautious feeling of shoppers was also seen in the barometer of consumer expectations which fell to 65.4 in September -- once again the lowest level seen since February. The reading fell from 72 in August.
The consumer’s assessment of the current conditions fell to 23.1 this month from 24.9 last month, as the number of respondents who see business condition worsening in the next six months rose to 16.4 percent in September from 13.4 percent in August.
In a positive sign, the number of consumers planning to purchase major appliances increased to 27.5 percent from 24.6 percent.
The Conference Board reported Tuesday that its monthly gauge for consumer confidence fell to 48.5 in September from a slightly downwardly revised 53.2 in August. Economists had expected the reading to be much higher, at 52.5.
“September’s pull-back in confidence was due to less favorable business and labor market conditions, coupled with a more pessimistic short-term outlook,” Lynn Franco, Director of The Conference Board Consumer Research Center, said. “Overall, consumers’ confidence in the state of the economy remains quite grim. And, with so few expecting conditions to improve in the near term, the pace of economic growth is not likely to pick up in the coming months.”
The government recently said that the recession officially ended in June 2009, but consumers are obviously still worried and feeling the effects of the downturn.
The cautious feeling of shoppers was also seen in the barometer of consumer expectations which fell to 65.4 in September -- once again the lowest level seen since February. The reading fell from 72 in August.
The consumer’s assessment of the current conditions fell to 23.1 this month from 24.9 last month, as the number of respondents who see business condition worsening in the next six months rose to 16.4 percent in September from 13.4 percent in August.
In a positive sign, the number of consumers planning to purchase major appliances increased to 27.5 percent from 24.6 percent.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Verizon planning new round of layoffs this week - Barron’s
- PPI Final Demand (Jun) -0.3% vs 0.0% Expected, Ex Food and Energy 0.2% vs 0.3%
- Pending Homes Sales (Jun) -5.4% vs -0.5% Expected
Create E-mail Alert Related Categories
Economic Data, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
