The Conference Board reports its Consumer Confidence Index, which improved slightly in September, softened in October to stand at 39.8, down from 46.4 in September.
Lynn Franco, Director of The Conference Board Consumer Research Center, says: "Consumer confidence is now back to levels last seen during the 2008-2009 recession. Consumer expectations, which had improved in September, gave back all of the gain and then some, as concerns about business conditions, the labor market and income prospects increased. Consumers' assessment of present-day conditions did not fare any better. The Present Situation Index posted its sixth consecutive monthly decline, as pessimism about the current economic environment continues to grow."
The Conference Board says consumers' outlook for the job market was slightly more pessimistic. Those anticipating more jobs in the months ahead edged down to 11.3% from 11.9%, while those expecting fewer jobs decreased to 27.4% from 28.6%. The proportion of consumers anticipating an increase in their incomes declined to 10.3% from 13.5%.
Juli says: The Dow Jones Industrial Average initially weakened on the news, recognizing confidence has slipped back to "recessionary" levels. But on top of investors' watch-list is the euro-zone situation, as leaders are expected to announce a plan by tomorrow re: its debt situation.