The Conference Board reports that consumer confidence took a nosedive in September. The index dropped from 81.7 in August to 76.8 in September, while the expectations index fell from 94.9 in August to 88.4. The present situation index slipped from 62.0 to 59.5.
“The lack of improvement in labor market conditions continues to dampen consumers’ spirits,” Lynn Franco, the Conference Board’s research center director, said in a statement. “Despite September’s retreat, consumers remain cautiously optimistic about the outlook for the next six months. Consumer spending is likely to continue at or near current levels.”
The September report shows an equally less-than-optimistic outlook for the U.S. job market. Those anticipating the job market to improve dropped from 18% to 16.7%, while those expecting fewer jobs to become available increased from 18.6% to 21%. What’s more, consumers expecting an increase in their income dropped from 20.7% to 18.6%.