The Latest Press Release
Consumer Confidence Retreats in August
Aug-29-2000
The Conference Board's Consumer Confidence Index dipped moderately in August,
after rebounding in July. The Index now stands at 141.1 (1985=100), down from 143.0 in July. The
Present Situation Index declined from 186.8 to 183.4, while the Expectations
Index also fell, from 113.7 to 113.0. The Consumer Confidence Index is based on a representative sample of 5,000
U.S. households. The monthly survey is conducted for The Conference Board by NFO
Research Inc., an NFO Worldwide Company and member of The Interpublic Group of
Companies (NYSE: IPG). CONFIDENCE LEVEL MAY HAVE PLATEAUED "Recent fluctuations may indicate that confidence levels have reached a
plateau, and a cooling in spending habits may well be on the horizon," says Lynn
Franco, Director of The Conference Board's Consumer Research Center. "Despite
the decline in confidence, consumers' attitudes about future economic growth
prospects remain upbeat." Consumers' assessment of current conditions was mixed. The percentage of
survey participants that felt business conditions were "good" rose to 46.3
percent from 45.4 percent last month. Those rating conditions as "bad" climbed
to 8.3 percent from 7.3 percent. Consumers claiming jobs were "hard to get"
increased to 10.6 percent from 9.6 percent in July. The short-term outlook was also mixed. The percentage of survey participants
expecting an improvement in business conditions during the next six months
improved slightly to 17.4 percent from 17.2 percent in the previous survey.
Those expecting conditions to worsen fell to 5.5 percent from 6.1 percent. But
the job outlook was less upbeat than in July. The proportion of consumers
expecting more jobs to become available in the coming months declined to 16.8
percent from 17.6 percent in July. Those expecting fewer jobs to become
available rose to 11.2 percent from 10.2 percent. Income prospects were more
optimistic than in the prior survey. Currently, 27.9 percent of respondents
anticipate an increase in their income, up from 26.4 percent in July.
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