Consumer Confidence Plunges in September

U.S. Consumer confidence in September dropped to its lowest point in almost two years, according to the Conference Board.

The Consumer Confidence Index came in at 99.8 in September, far below what analysts had been expecting. The index was revised slightly higher for August, however.

Consumer confidence hit a six-year high in July of this year but has dropped the past two months. The drop from July’s number to September’s is the most rapid fall since the two months following hurricane Katrina.

Lynn Franco, Director of the Conference Board Consumer Research Center, commented in a release, “Weaker business conditions combined with a less favorable job market continue to cast a cloud over consumers and heighten their sense of uncertainty and concern. Looking ahead, little economic improvement is expected and with the holiday season around the corner this is not welcome news.”

Analysts polled by Reuters and MarketWatch had expected a reading of around 104.

The Conference Board said that the outlook for the labor market was mixed. The percent of consumers expecting more jobs in the months ahead inched up to 13.3 percent from 12.9 percent, while those anticipating fewer jobs increased to 18.7 percent from 15.2 percent. The proportion of consumers expecting their incomes to increase in the months ahead improved moderately to 20.4 percent from 19.8 percent.