The Consumer Confidence Index declined in October to 47.7 (1985=100) compared with 53.4 in September, the Conference Board reported yesterday. The Present Situation Index decreased to 20.7 in October from 23 in September and the Expectations Index declined to 65.7 from 73.7 last month, according to the report.

“Consumers’ assessment of present-day conditions has grown less favorable, with labor market conditions playing a major role in this grimmer assessment,” said Lynn Franco, director of The Conference Board Consumer Research Center.  “The Present Situation Index now is at its lowest reading in 26 years.  The short-term outlook also has grown more negative, as a greater proportion of consumers anticipate business and labor market conditions will worsen in the months ahead. Consumers also remain quite pessimistic about their future earnings, a sentiment that will likely constrain spending during the holidays.

“Consumers’ assessment of current conditions was less favorable in October, with those claiming business conditions are “bad” increasing to 47.1 percent in October from 46.3 percent the previous month, while those claiming conditions are “good” decreased to 7.7 percent in October compared with 8.6 percent in September. Consumers’ appraisal of the job market also was less favorable, and their short-term outlook also was slightly more pessimistic, according to the report.

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