The Conference Board Consumer Confidence Index dropped in November. The index now stands at 88.7, down from 94.1 in October.
The Present Situation Index declined from 94.4 to 91.3 and the Expectations Index decreased sharply to 87.0 from 93.8 in October, the board said today.
“Consumer confidence retreated in November, primarily due to reduced optimism in the short-term outlook,” The Conference Board director of economic indicators Lynn Franco said in a statement. “Consumers were somewhat less positive about current business conditions and the present state of the job market; moreover, their optimism in the short-term outlook in both areas has waned. However, income expectations were virtually unchanged and gas prices remain low, which should help boost holiday sales.”
The percentage of consumers who expect business conditions to improve during the next six months decreased from 19.4 percent to 17.6 percent and those who expect business conditions to worsen rose from 8.9 percent to 10.7 percent.
Consumers’ outlook for the labor market was also less optimistic. Those who anticipate more jobs in the months ahead decreased from 16 percent to 15 percent and those who anticipate fewer jobs rose from 14.1 percent to 16.4 percent.
The proportion of consumers who expect growth in their income edged down from 16.7 percent to 16.3 percent and the proportion who expect a drop in income was virtually unchanged at 11.4 percent, compared with 11.3 percent in October.
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