Gloom Descends on US Consumer Confidence

31 August 2006

WASHINGTON DC: The US Conference Board's monthly index reveals consumer confidence fell sharply in August, plunging to its lowest level since last November.

The latest index reading of 99.6 was below the 107.0 reported in July, and represents the steepest single-month decline since the immediate aftermath of Hurricane Katrina a year ago.

The figures reflect a widespread view that a period of brisk growth is coming to an end. Many economists say they think the outlook will grow worse because consumers sense the slowdown and are reining-in their spending.

Survey participants opining that conditions are "good" fell to 26.1% in August, from 27.3% in July. Those who said they believed conditions were "bad" increased to 16.7% from 15% last month. And respondents expecting business conditions to worsen increased to 12.9% from 10.9%.

Data sourced from New York Times; additional content by WARC staff