The consumer confidence index slipped to 47.7 in October from an upwardly revised 53.4 last month, the Conference Board reported yesterday. The September index was originally reported as 53.1.
Economists polled by Thomson Reuters predicted the index would rise to 53.5.
The present situation index fell to 20.7 from an upwardly revised 23.0, originally reported as 22.7, while the expectations index dipped to 65.7 from an upwardly revised 73.7 last month, originally seen as 73.3.
“Consumers’ assessment of present-day conditions has grown less favorable, with labor market conditions playing a major role in the grimmer assessment,” said Lynn Franco, director of the Conference Board’s consumer research center. “In fact, the present situation index is now at its lowest reading in 26 years (17.5 February 1983).”
“The short-term outlook has also grown more negative, as a greater proportion of consumers anticipate business and labor market conditions will worsen in the months ahead,” Franco said. “Consumers also remain quite pessimistic about their future earnings, a sentiment that will likely constrain spending during the holidays.”