
A measure of consumer confidence continues to decline as concerns mount over the COVID-19 pandemic as well as business and labor conditions.
The Conference Board reported its Consumer Confidence Index fell 5.9 points to 109.3 in September. Components of the index tracking assessments of current conditions, as well as short-term outlooks, retreated.
With declines in each of the last two months, the Consumer Confidence Index has dropped 19.6 points from a recent peak of 128.9 in June
“These back-to-back declines suggest consumers have grown more cautious and are likely to curtail spending going forward,” said Lynn Franco, senior director of economic indicators at the Conference Board.
Franco said consumer confidence dropped in September as the spread of the Delta variant of COVID-19 continued to dampen optimism. Consumers also worried about the economy and the prospects for short-term growth. Concerns over inflation eased, but remained elevated.
While the Consumer Confidence Index remains high enough by historical standards to suggest continued growth over the short term, spending plans for autos, homes and major appliances retreated, she said.
The business research and membership group bases the index on the results of monthly household surveys. Economists monitor the index because consumer spending accounts for more than two-thirds of economic activity.
Less upbeat assessments of current conditions pulled down the present situation component of the index 5.5 points to 143.4.
The proportion of consumers responding to the survey upon which the September index was based who described business conditions as ‘good” fell nine-tenths of a point to 19.3 percent. The share of those who called conditions “bad” rose 1.3 points to 25.4 percent.
The proportion of those who said jobs are “plentiful” rose three-tenths of a point to 55.9 percent. But the share of those who said jobs are “hard to get” rose 2.2 points to 13.4 percent.
Less optimistic outlooks pushed down the expectations component of the index down 6.2 points to 86.6.
The share of consumers who said they expect business conditions to improve over the next six months fell 1.9 points to 21.5 percent. The proportion of those expected worsening conditions rose two-tenths of a point to 17.6 percent.
The share of consumers who expected more jobs to become available in coming months fell 1.6 points to 21.5 percent. The proportion of those anticipating fewer jobs increased 2.3 points to 20.3 percent.
While 17.3 percent of consumers said they expected their incomes to increase — a drop of nine-tenths of a point — another 11.5 percent anticipated earning less. That’s an increase of 1.6 points.