Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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

Index Last Change % Change
Dow 16,890.64 100.45 0.60%
Nasdaq 4,785.32 36.96 0.78%
S&P 500 1,993.50 13.58 0.69%
Treasuries 2.06 0.03 1.33%
Data as of 3:57pm ET
Company Price Change % Change
Freeport-McMoRan Inc... 12.91 1.08 9.13%
Bank of America Corp... 15.70 0.02 0.10%
General Electric Co 27.65 0.36 1.32%
Apple Inc 110.66 -0.65 -0.58%
Micron Technology In... 18.61 0.39 2.14%
Data as of 3:42pm ET


These two fantasy football players won more than $100,000 on FanDuel and DraftKings earlier this NFL season. Now they sound off on the cheating scandal rocking the industry. More

A new analysis from the Bipartisan Policy Center estimates the U.S. Treasury will not be able to pay all the country's bills in full and on time sometime between Nov. 10 and Nov. 19. More

Saudi billionaire Prince Alwaleed Bin Talal has increased his stake in Twitter, days after the social network named Jack Dorsey as its permanent CEO. More

Smarties, a Halloween candy staple, have been around for 66 years. Three Millennial women are revolutionizing it. More

One of the largest pension funds in the country says it needs to cut benefits for 273,000 current and future retirees as soon as July. Otherwise, it won't be able to pay any benefits after 2025. More