Consumer confidence reaches 15 year low
September 22, 2005
Consumer confidence in the United States fell more in September than it has in any month in 15 years, according to the Conference Board’s Consumer Confidence Index.
The index hit its lowest level in two years, falling 18.9 points to 86.6 in September. It had been expected to come in at 98 for the month. The drop was blamed on the effects of Hurricane Katrina, rising gasoline prices, and a job outlook that was less than optimistic.
However, the Conference Board’s director of consumer research also said that such shocks as Katrina generally have only a short-term impact on consumers and that confidence should rise again once rebuilding begins in the storm zone and those put out of work by the hurricane begin to find new jobs.
Within the index, the component looking at consumers’ feelings about the current economic situation fell from 123.8 in August to 108.9 in September.
The Expectations Index, a component of the survey which examines the outlook of consumers over the next six months, fell from 93.3 in August to 71.7 in September.
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