Consumer confidence tumbles in September

Consumer confidence took a tumble in September after four months of improvement over concerns about jobs growth and the economic expansion.

The Conference Board said Tuesday that their latest index declined to 86 in September, a steep drop from 93.4 in August, which had been a seven-year high.

{mosads}The index measuring current conditions decreased to 89.4 from 93.9 because of a less positive assessment of the labor market, especially after growth slowed in August. 

“Consumers were less confident about the short-term outlook for the economy and labor market, and somewhat mixed regarding their future earnings potential,” said Lynn Franco, director of economic indicators at The Conference Board.

“All told, consumers expect economic growth to ease in the months ahead.”

Meawhile, the expectations index dropped to 83.7 from 93.1 in August.

Consumers remain troubled about the lack of rising wages even amid solid jobs growth this year.

The proportion of consumers expecting growth in their incomes rose in September to 16.8 percent compared with 15.5 percent in August.

However, the proportion expecting a drop in income also rose — to 13.4 percent from 11.6 percent a month ago.

The survey showed that 15.1 percent said jobs were currently plentiful compared with 17.6 percent last month.

Those anticipating more jobs in the months ahead fell to 15.2 percent from 17.8 percent, while those anticipating fewer jobs rose to 17.8 percent from 15.2. 

Separate reports released on Monday showed that wages rose 0.3 percent in August, the fastest pace in three months while consumer spending was up 0.5 percent, the same as July.