Consumer Confidence drops in September
Consumer Confidence had its largest decline of the year as it slipped 9.1 points to 125.1 in September from 134.2 in August, the Conference Board reported today.
The reading for August was also revised down to 134.2 from 135.1.
“Consumers were less positive in their assessment of current conditions and their expectations regarding the short-term outlook also weakened. The escalation in trade and tariff tensions in late August appears to have rattled consumers,” said Lynn Franco, senior director of economic indicators at the Conference Board.
The Present Situation Index – based on consumers’ assessment of current business and labor market conditions – decreased from 176.0 to 169.0, after hitting a 19-year high last month. .
The Expectations Index – based on consumers’ short-term outlook for income, business and labor market conditions – declined from 106.4 last month to 95.8 this month, which is the lowest reading since January.
The percentage of consumers expecting business conditions will be better six months from now decreased from 21.6% to 19% percent, while those expecting business conditions will worsen increased from 10.2% to 14.3%.
Regarding the job market, those expecting more jobs in the months ahead decreased from 19.9% to 17.5%, while those anticipating fewer jobs increased from 13.7% to 15.7%. Regarding their short-term income prospects, the percentage of consumers expecting an improvement decreased from 24.7% to 19%, however the proportion expecting a decrease also declined, from 6.3% to 5.6%.
The full report from The Conference Board is available here.
The reading for August was also revised down to 134.2 from 135.1.
“Consumers were less positive in their assessment of current conditions and their expectations regarding the short-term outlook also weakened. The escalation in trade and tariff tensions in late August appears to have rattled consumers,” said Lynn Franco, senior director of economic indicators at the Conference Board.
The Present Situation Index – based on consumers’ assessment of current business and labor market conditions – decreased from 176.0 to 169.0, after hitting a 19-year high last month. .
The Expectations Index – based on consumers’ short-term outlook for income, business and labor market conditions – declined from 106.4 last month to 95.8 this month, which is the lowest reading since January.
The percentage of consumers expecting business conditions will be better six months from now decreased from 21.6% to 19% percent, while those expecting business conditions will worsen increased from 10.2% to 14.3%.
Regarding the job market, those expecting more jobs in the months ahead decreased from 19.9% to 17.5%, while those anticipating fewer jobs increased from 13.7% to 15.7%. Regarding their short-term income prospects, the percentage of consumers expecting an improvement decreased from 24.7% to 19%, however the proportion expecting a decrease also declined, from 6.3% to 5.6%.
The full report from The Conference Board is available here.