NEW YORK – Continued job worries resulted in an unexpected decline in consumer confidence in September, the second consecutive monthly dip, a New York-based private research group said Tuesday.
The Consumer Confidence Index fell to 96.8 from a revised reading of 98.7 in August, according to The Conference Board. Analysts had expected a reading of 99.5.
“Soft labor market conditions have clearly taken a toll on consumer confidence,” said Lynn Franco, director of the organization’s Consumer Research Center. “Still, expectations for the next six months are virtually unchanged from August.”
Economists closely track consumers’ outlook about the economy and employment because consumer spending accounts for two-thirds of all U.S. economic activity.
The confidence index, which was as high as 144.7 in May 2000 when the job market was flourishing, has been volatile since the economy emerged from recession in November 2001. It fell to 64.4 in March 2003 after the U.S.-led invasion of Iraq but then began what had been a gradual but inconsistent rise as the job market recovery has remained tenuous, according to Franco. It was 105.7 in July.
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