Consumer confidence falls to all-time low
Impact of financial crisis takes its toll
Furniture Today Staff -- Furniture Today, October 28, 2008
NEW YORK — Consumer confidence fell to an all-time low in October, plunging more than 23 points to 38.0, down from an already weak 61.4 in September, the Conference Board reported.
The research organization said the Present Situation Index fell to 41.9 from 61.1 last month, while the Expectations Index declined to 35.5 from 61.5 in September.
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"The impact of the financial crisis over the last several weeks has clearly taken a toll on consumers' confidence. The decline in the Index (-23.4 points) is the third largest in the history of the series, and the lowest reading on record," said Lynn Franco, director of the Conference Board Consumer Research Center.
"In assessing current conditions, consumers rated the labor market and business conditions much less favorably, suggesting that the fourth quarter is off to a weaker start than the third quarter. Looking ahead, consumers are extremely pessimistic, and a significantly larger proportion than last month foresees business and labor market conditions worsening," she said.
Franco said consumers' pessimistic earnings and inflation outlook "does not bode well for retailers who are already bracing for what is shaping up to be a very challenging holiday season."
There were big differences in confidence regionally, according to the survey of 5,000 U.S. households conducted for the Conference Board, which had a cutoff date of Oct. 21.
The lowest readings in October were in New England at 22.2, down from 42.8 in September; East North Central at 30.0, down from 44.5; Middle Atlantic at 33.5, down from 50.1; and South Atlantic at 35.6, down from 64.3.
Somewhat more optimistic were the East South Central region at 46.1, down from 83.0 in September; West North Central at 50.3, down from 61.4; and Mountain at 55.1, down from 75.0.
Posting the highest index reading was the West South Central region at 75.0, down from 93.0 a month ago.
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