Consumer Confidence Sinks More Than Expected in November

The Conference Board's Consumer Confidence Index fell more than expected in November, plummeting to 87.3 (consensus 91) from 95.6 in October. As with other consumer confidence measures, sentiment has fallen to the lowest level since hurricane Katrina in 2005. This index averaged 106 last year. This index puts more weight on the labor market than other consumer sentiment surveys, and suggests consumers are becoming more concerned about their jobs as initial claims rise. All regions saw weakening sentiment except for New England.

Both current conditions and future expectations fell in November. The outlook for the next six months fell off a cliff to the lowest level since early 2003 (when the Iraq War started), from 80 in October to 68.7 in November. On the jobs front the share of people looking for incomes to rise and finding jobs easy to find both dropped, as did the number of people planning to buy a new home or car in the next six months.

This data supports continued slowing of consumer spending going into the holiday season.