Consumer confidence takes largest drop since Oct. 1990
By Furniture Today Staff -- Furniture Today, October 1, 2001
NEW YORK — Consumer confidence took its largest drop since 1990 in September, falling 16.4 points to 97.6, according to The Conference Board's monthly survey.
Results of surveys done before and after the Sept. 11 terrorist attacks "differed slightly," the research firm said, but the index was on a downward trend even before those events.
It was the largest monthly decline in the index since a 23-point plunge in October 1990. Deteriorating labor market conditions and a weakening business climate fueled the latest decline, the board said.
"As the economic ramifications of Sept. 11 continue to reverberate in the coming weeks and months, and the number of layoffs continues, the economy faces tougher times ahead," said Lynn Franco, director of the board's Consumer Research Center. "While consumers have managed to keep the United States out of a recession for several years, that soon may no longer be the case."
Confidence declined in all nine regions, according to the survey done for The Conference Board by NFO WorldGroup.
Nationwide, consumers rating business conditions as favorable declined from 27.7% in August to 22% in September, while those claiming jobs were "hard to get" rose from 16% to 18.5%.
Expectations for the next six months grew more pessimistic. The percentage of consumers anticipating business conditions to worsen rose from 10.7% to 15%, and those expecting fewer jobs increased from 17.7% to 21.9%.
Buying plans for homes and big-ticket items also declined. The percentage planning to buy a car within six months went from 8.1% in August to 7.3% in September, while those planning to buy a home declined from 3.9% to 3.5%. Plans to buy a major appliance fell from 31.5% to 29.3%.
The survey doesn't ask about furniture or bedding.
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