NEW YORK - The consumer confidence index declined to 39.8 in October from an upwardly revised 46.4 last month, The Conference Board reported Tuesday.
Economists polled by Thomson Reuters predicted the index would be 46.5.
The September index was originally reported as 45.4.
The present situation index fell to 26.3 from an upwardly revised 33.3, originally reported as 32.5, while the expectations index dropped to 48.7 from an upwardly revised 55.1, originally reported as 54.0.
“Consumer confidence is now back to levels last seen during the 2008-2009 recession,” said Lynn Franco, director of The Conference Board's Consumer Research Center. “Consumer expectations, which had improved in September, gave back all of the gain and then some, as concerns about business conditions, the labor markets and income prospects increased. Consumers’ assessment of present-day conditions did not fare any better. The present situation index posted its sixth consecutive monthly decline, as pessimism about the current economic environment continues to grow.”
Business conditions were called “good” by 11.0% of respondents in October, down from 12.1% in September. Those saying conditions are “bad” climbed to 43.7% from 40.5%.
The percentage of consumers expecting a pickup in business conditions in the next half year fell to 9.1% from 11.8%, while 21.5% said they expect conditions to worsen, down from 21.9% the prior month.
On the jobs front, those who believe jobs are “plentiful” slid to 3.4% in October from 5.6% in September, while the number saying jobs are “hard to get” decreased to 47.1% this survey from 49.4%. The respondents who see fewer jobs becoming available in a half year, slid to 27.4% from 28.5%. Those expecting more jobs to become available slipped to 11.3% from 11.9%, The Conference Board reported.
Income expectations were lower, with 10.3% of consumers anticipating an increase in their income in the next six months, down from the prior month's 13.5%, while 19.2% expect their income to decrease, up from 17.8% in the prior month’s survey.
The number of consumers who expected to buy a home in the next six months dropped to 3.9% from 4.7%, while the number of respondents planning to buy a car slid to 11.0% from 11.1%. More consumers than last month said they plan to buy a major appliance in the next six months (45.9% vs. 40.8%).
More respondents than last month (50.0% vs. 46.9%) expect to take a vacation in the next six months, but more said they would stay in the U.S. rather than leave the country. Cars rather than airplanes were the preferred mode of travel, by a 27.3%-20.6% margin.
The consumer confidence survey is based on a probability design random sample by the Nielsen Company.
