United States: Consumer confidence plunges to lowest level in over two years
August 28, 2011
In August, the Conference Board consumer confidence index dropped sharply to 44.5 points, down from the revised 59.2 points recorded in July (previously reported: 58.5 points). The print came in well below market expectations that had the index falling to 52.5 points and represents the lowest level since April 2009. According to the Conference Board, the protracted debt ceiling negotiations probably contributed to a weaker reading. Nevertheless, sentiment mostly dropped ?as consumers grew significantly more pessimistic about the short-term outlook.? Furthermore, consumers were also less upbeat about the labour market, with nearly a third of the respondents anticipating fewer jobs to be available in the months ahead.