This news probably won't come as a surprise, but consumer confidence is down.
The latest Consumer Confidence Index, published by research organization The Conference Board, indicates that the general public is concerned with both the immediate economic situation, as well as with what's ahead in the coming months.
October's Present Situation Index decreased more than two points to 108.2, its lowest point since last December. And, after a precipitous drop in September, the Expectations Index continued downward, falling to 69.5. The last time that consumers were this pessimistic about economic conditions six months hence was March of 2003.
Two of the three factors contributing to the decrease were, as you might expect, directly attributable to the volatile weather. “Much of the decline in confidence over the past two months can be attributed to the recent hurricanes, [gas] pump shock, and a weakening labor market,” said Lynn Franco, director of The Conference Board Consumer Research Center. Franco indicated that the effects of this year's brutal hurricane season will be felt even after the storms finally end, in the form of heating bills driven through the roof by higher fuel prices.
The Consumer Confidence Index dropped 2.5 points to 85 in October. Feelings about both current conditions and the future were pessimistic, as is shown above.
Credit: The Conference Board