AppId is over the quota
AppId is over the quota
Consumer confidence in the U.S. plummeted in October to its lowest level since the recession in 2009, the New York-based Conference Board said Tuesday.
The private research group said that its Consumer Confidence Index dropped more than six points to 39.8, down from a revised 46.4 in September.
That was its lowest since March 2009, when it was at 26.9.
Economists’ consensus had been for a reading of 47, according to those surveyed by FactSet. A reading below 90 suggests the economy is less than healthy.
'The job market, the housing market, and the overall slow recovery in the U.S. economy are clearly cutting deeply into confidence levels.'—Jennifer Lee, Senior Economist, BMO Capital Markets
Consumer spending accounts for about 70 per cent of U.S. economic activity.
The reading was “terrible news,” BMO Capital Markets’ senior economist Jennifer Lee said in a commentary.
“The job market, the housing market, and the overall slow recovery in the U.S. economy are clearly cutting deeply into confidence levels,” Lee said.
"A loss of confidence can have profound consequences for the real economy," Chris Jones, an economist at TD Bank, said.
"Economic activity thrives on spending and investment. Together, the interaction between consumers and businesses is what generates jobs, spurs productivity growth, and pushes the boundaries of new innovation — all of which ultimately leads to a higher standard of living."
"Unfortunately," Jones said, "the more consumers and businesses lose confidence and turn inward, the longer will it take for the economy to recover its full strength."
And a separate measure of housing prices, the S&P Case-Shiller home price index fell for the 14th time in the last 15 months in August.
It found prices in the largest 20 metropolitan areas across the U.S. slipped 0.1 per cent from July, and fell 3.8 per cent from the year earlier.
The results weren’t surprising, given the backlog of foreclosed homes in the U.S.
“It will take a few years to get rid of the excess inventories of homes available for sale,” Lee said.
Not counting those foreclosures, “there are still about 3.7 million new and existing homes for sale,” Lee said, “which works out to 8.3 months supply, well above normal.”
With files from The Associated Press
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