October 30, 2001
Consumer Confidence Drops Sharply
Another sign of faltering in the U.S. economy came today as The Conference Board announced its Consumer Confidence Index dropped 11.5 points in October to its lowest point since Feb. 1994. After declining for the fourth consecutive month, the Index stands at 85.5.
The Conference Board's Present Situation Index fell from 125.4 in September to 107.6 in October. The Expectations Index, which is used to forecast future economic activity, fell as well from 78.1 to 70.8.
"The economic outlook is becoming increasingly pessimistic, with consumer sentiment continuing to fall," says Lynn Franco, director of The Conference Board's Consumer Research Center. "Widespread layoffs and rising unemployment do not signal a rebound in confidence anytime soon. With the holiday season quickly approaching, there is little positive stimuli on the horizon."
- by Julia M. Duncan