The consumer confidence index slipped to 48.5 in September from a downwardly revised 53.2 last month, the Conference Board reported Tuesday.
The August index was originally reported as 53.5.
Economists had predicted the index would slip to 52.5.
The present situation index dropped to 23.1 from an unrevised 24.9
Meanwhile, while the expectations index decreased to 65.4 from a downwardly revised 72.0 last month, originally reported as 72.5.
“September’s pull-back in confidence was due to less favorable business and labor market conditions, coupled with a more pessimistic short-term outlook,” said Lynn Franco, director of the Conference Board’s Consumer Research Center.
“Overall, consumers’ confidence in the state of the economy remains quite grim,” she added. “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.”
Business conditions were called “good” by 8.1% of respondents in September, a decrease from 8.4% in August. Those saying conditions are “bad” rose to 46.1% from 42.3%.