Reply #26: Expectations of future at lowest level since July 2003 [View All]

[UpInArms]

http://www.marketwatch.com/news/story.asp?guid=%7B9C97A306%2D5AB6%2D4F9C%2DA462%2D3D64DB4B3CA8%7D&siteid=mktw

WASHINGTON (MarketWatch) -- U.S. consumer confidence declined for the third straight month, the Conference Board said Tuesday.

The consumer confidence index fell to 97.7 in April from 103.0 in March. Confidence is at its lowest level since November.

The decline was sharper than expected. Economists had been forecasting that the index would slip to 98.1 from the earlier estimate of 102.4, according to a survey conducted by MarketWatch. See Economic Calendar.

"Less robust current conditions and a more cautious outlook have consumers feeling less confident in April than in March," said Lynn Franco, Director of The Conference Board's Consumer Research Center.

The present situation index fell to 113.6 from 117.0, while the expectations index slipped to 87.2 from 93.7. This is the lowest level of the expectations index since July 2003.

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Full Report:

Consumer Confidence

http://www.conference-board.org/economics/consumerConfidence.cfm

The Conference Board’s Consumer Confidence Index, which had declined in March, lost more ground in April. The Index now stands at 97.7 (1985=100), down from 103.0 in March. The Present Situation Index declined to 113.6 from 117.0. The Expectations Index declined to 87.2 from 93.7.

The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS NFO. TNS NFO is one of the TNS group of companies (LSE: TNN). The cutoff date for April’s preliminary results was April 19th.

“Less robust current conditions and a more cautious outlook have consumers feeling less confident in April than in March,” says Lynn Franco, Director of The Conference Board’s Consumer Research Center. “Despite the decline, the Present Situation Index remains at levels indicative of a healthy economy. However, the Expectations Index is now at its lowest level since July 2003 when it registered 86.3. Looking ahead, consumers do not anticipate an improvement in economic growth nor in their incomes. And, they expect an even tighter job market over the summer months.”

Consumers rated current conditions as less favorable in April than in March. Although the percentage claiming business conditions are “good” edged up to 27.0 percent from 26.3 percent, those claiming conditions are “bad” increased to 17.7 percent from 15.8 percent in March. The employment picture was also somewhat mixed. Consumers saying jobs are “hard to get” declined to 23.3 percent from 23.8 percent, but those claiming jobs are “plentiful” declined to 20.4 percent from 21.8 percent.

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