Consumer confidence falls to year’s lowest level
Fuel costs, job outlook contribute to drop
-- Casual Living, 9/5/2006 12:16:00 PM
With Americans worried about fuel costs and increasingly fearful about the jobs outlook, consumer confidence dropped by almost 7% in August and reached a new low for the past year. The Consumer Confidence Index fell from 107 in July to 99.6, down from a high of 109.8 in April.
“Consumer confidence lost significant ground in August and is now at its lowest level this year,” said Lynn Franco, director of The Conference Board Consumer Research Center. “Less favorable business conditions coupled with a less favorable job scenario have resulted in the largest one month decline in confidence since Hurricane Katrina last year. Looking ahead, the glass remains half empty as consumers are growing increasingly more pessimistic about the short-term outlook.”
Consumers’ overall assessment of current conditions was significantly less favorable in August. Those claiming conditions are “good” decreased to 26.1% from 27.3%. Those claiming conditions are “bad” increased to 16.7% from 15%. Labor market conditions were also less favorable. Consumers saying jobs are “plentiful” decreased to 24.4% from 28.6%, while those claiming jobs are “hard to get” increased to 21.1% from 19.6 in July.
Consumers’ outlook for the next six months turned more negative in August. Those anticipating business conditions to worsen increased to 12.9% from 10.9%. Those expecting business conditions to improve edged down to 15.9% from 16.1%.
The outlook for the labor market was also less favorable. Those expecting more jobs to become available in the coming months decreased to 14% from 14.3% in July. Those expecting fewer jobs increased to 18.3% from 16.5%. The proportion of consumers anticipating their incomes to increase in the months ahead declined to 17.7% from 18.3%.
The Present Situation Index decreased to 123.4 from 134.2. The Expectations Index declined to 83.8 from 88.9 in July.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS, the world's largest custom research company. The cutoff date for August preliminary results was Aug. 22.
We would love your feedback!
-
Consumer confidence decreases during May
Jun 3, 2011 -
Consumer Confidence Jumps in May
May 29, 2009 -
Consumer Confidence Jumps in May
May 28, 2009
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
