US consumer woes overshadow housing cheer

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  • Consumer confidence unexpectedly decreased in the month of September to 53.1 in September from 54.5 in August.
  • Economist had been expecting the index to increase to 57 from 54.1 originally reported for the previous month.
  • Despite the unexpected decrease the index remains well off the low of the 25.3 set in February 2009. 
  • Report showed that those claiming current business conditions are “bad” rose to 46.3% in September from 44.6% in August, although those claiming conditions are “good” also edged up to 8.7% from 8.5%. 
  • Those claiming jobs are “hard to get” increased to 47% in September from 44.3% in August and those claiming jobs are “plentiful” fell to 3.4% from 4.3%
  • Consumers’ short term outlook was also slightly more pessimistic, with the expectations index edging down to 73.3% in September from 73.8% in the previous month.
  • Consumers expecting business conditions to improve over the next 6 months fell to 21.3% in September from 22.2% in August.  While those expecting conditions to worsen decreased to 15% from 15.2%
  • Outlook for the labor market was nearly unchanged, with those expecting more jobs in the months ahead edging down to 17.9% in September from 18% in August and those expecting fewer jobs unchanged at 23.1%.
  • Those expecting an increase in the incomes increased slightly to 11.2% in September from 10.8% in August.

"While not as pessimistic as earlier this year, consumers remain quite apprehensive about the short-term outlook and their incomes. Plus, with the holiday season approaching, this is not very encouraging news.” – Lynn Franco (Director, Conference Board Consumer Research Center)

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Source: RTT, Barron's & Marketwatch

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