Just when we thought the economy was in an upswing, a key measure of consumer confidence fell in September after gaining the previous month.Consumer worries are directed at job security, which seem to be creating enough negative energy to offset any confidence in stocks or home prices. On a good note, home prices were on the rise again in September, benefiting from growth kicking off in July.
The Conference Board, a New York-based business research group, conducted the survey. Their confidence index dropped from 54.5 in August to 53.1 in September.
Economists projections? A much higher rating of 57.
Mark Vitner, senior economist at Wells Fargo says, "Last year, consumers were shell shocked as they worried about what might happen to the economy. Today, shoppers ... don't have the means to step up spending."
According to the Conference Board's survey, consumers continue not to shop for appliances, cars or homes. Consumers are also highly concerned about the job market. It's causing a lot of money-related anxiety. This weak market has caused consumers to be extremely frugal. Shawn Chambers of Chicago has been job searching since August 2008. "Jobs are hard to find, the ones you have are hard to keep. And money's tight," she said. "They're laying people off, and I don't know if I'm next," Chambers says.
For the record, a reading of 100 equals strong growth, and a reading of 90 or above means solid footing for the economy, according to a recent Yahoo article.
