The Conference Board's Consumer Confidence Index, which has been dipping since August, fell again in October to 95.6 (1985=100), down 4.2% from September and down 9.0% from October of last year.
Said Lynn Franco, Director of The Conference Board Consumer Research Center: "Consumer confidence posted its third monthly decline and continues to hover at two-year lows (Oct. 2005, 85.2). Further weakening in business conditions has, yet again, tempered consumers' assessment of current-day conditions and may very well be a prelude to lackluster job growth in the months ahead. In addition, consumers are growing more pessimistic about the short-term future and their rather bleak outlook suggests a less than stellar ending to this year.".
Consumers' short-term expectations eroded in October. Consumers expecting business conditions to worsen in the next six months rose to 13.8% while consumers expecting their incomes to increase in the months ahead declined moderately to 19.6%.