Consumer confidence slumps in September

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- When it comes to attitudes about the economy, Americans continue to see the glass as half empty, according to the latest reading on consumer morale.

The Consumer Confidence Index fell to 48.5 in September -- its lowest level in 7 months -- and down from August's negatively revised level of 53.2, the Conference Board, a New York-based research group that compiles the index, said Tuesday.

The index has been volatile this year, not trending in any one direction for more than three months in a row. High unemployment and unfavorable business conditions have dragged the index down to a painfully low level, far below 90 -- the level which indicates a stable economy.

"Overall, consumers' confidence in the state of the economy remains quite grim. And, with so few expecting conditions to improve in the near term, the pace of economic growth is not likely to pick up in the coming months" Lynn Franco, director of The Conference Board Consumer Research Center said in a release.

Economists surveyed by Briefing.com had expected a much smaller decline, with the index touching 53.

In September, the number of consumers calling business conditions "bad" outweighed those saying conditions are "good" by nearly 6 to 1. Similarly, those saying jobs are "hard to get" far outnumbered those saying jobs are "plentiful." And the number of consumers with gloomy attitudes about both future employment prospects and business conditions, also increased.

"We're going to have to see some strong and steady job gains to convince consumers that the recovery is underway right now," Franco said. "While the recession may be over, it's still not feeling that way to consumers."

The consumer confidence index is based on a survey of 5,000 U.S. households and is closely monitored because consumer spending drives two-thirds of the nation's economic activity.

A reading of 100 or greater would indicate strong growth, and the index has not reached that level since mid 2007. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 15,335.28 -19.12 -0.12%
Nasdaq 3,496.43 -2.54 -0.07%
S&P 500 1,666.29 -1.18 -0.07%
Treasuries 1.96 0.02 0.82%
Data as of 5:44am ET
Company Price Change % Change
Bank of America Corp... 13.51 0.08 0.60%
Microsoft Corp 35.08 0.21 0.60%
Sprint Nextel Corp 7.29 -0.03 -0.41%
Advanced Micro Devic... 4.10 0.03 0.74%
Ford Motor Co 15.05 -0.03 -0.20%
Data as of May 20
Sponsors

Sections

Apple executives including CEO Tim Cook are due to appear before a Senate subcommittee on Tuesday, as lawmaker study how multinationals keep profits offshore for tax purposes. More

Apple executives including CEO Tim Cook are due to appear before a Senate subcommittee on Tuesday, as lawmaker study how multinationals keep profits offshore for tax purposes. More

The Internet asked Marissa Mayer to "please make Flickr awesome again," and in turn, the Yahoo CEO is revamping her company's photo-sharing service. More

Small business owners say they're not yet feeling the effects of an improving economy, and most aren't rushing to hire, or seeking funds to invest in their businesses. More

Between ballooning student loans, credit cards and money owed to family members, graduates of the class of 2013 are facing an average $35,200 in debt, a Fidelity survey found. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2013 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2013 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2013. All rights reserved. Most stock quote data provided by BATS.