Consumer confidence is weak reflecting an increasingly negative assessment of the jobs market. The Conference Board’s index did rise 2-1/2 points from July but August’s 53.5 level is still down almost 10 points from May (July revised six tenths higher to 51.0). More say jobs are hard to get, at 45.7 percent of the sample’s initial 3,000 respondents vs. July’s 45.1 percent for the worst reading since February. Again, direction is a special concern as pessimism has increased over the past two months. Confidence in future income improved slightly but remains very depressed with more seeing a decrease, at 16.1 percent, than an increase at 10.6 percent. Buying plans for homes are bleak with only two percent seeing a home purchase on the horizon.
Last week’s consumer sentiment index showed deterioration in the last two weeks of the month which, together with this not-so-upbeat report, will raise doubts whether consumers will do their share to help hold the economy up from a double dip. Today’s report points to a third straight month of contraction for Friday’s payroll data.
The Conference Board compiles a survey of consumer attitudes on present economic conditions and expectations of future conditions. Five thousand consumers across the country are surveyed each month. While the level of consumer confidence is associated with consumer spending, the two do not move in tandem each and every month
