U.S. September Consumer Confidence Index Drops to 86.6

[UpInArms]

http://quote.bloomberg.com/apps/news?pid=10000006&sid=aIGtAYjGIM3o&refer=home

Sept. 27 (Bloomberg) -- Consumer confidence in the U.S. fell in September to the lowest in almost two years after Hurricane Katrina devastated the Gulf Coast and pushed gasoline prices to a record.

The Conference Board's consumer confidence index fell to 86.6, the lowest since October 2003, from a revised 105.5 in August, the New York-based research group said today. The index was expected to fall to 95 from 105.6 previously reported for August, based on a Bloomberg News survey of 62 economists.

Katrina damaged drilling rigs and curtailed fuel shipments, and companies shut down more energy production in Texas as Hurricane Rita approached last week. The biggest drop in confidence in 15 years threatens to curtail the consumer spending that makes up 70 percent of the world's largest economy, hurting sales at companies including Avon Products Inc.

``This will reinforce the message that confidence took a big blow after the spike in gas prices earlier in the month,'' said Doug Porter, deputy chief economist at BMO Nesbitt Burns in Toronto, before the report. ``This can't do anything but hurt consumer spending, at least temporarily.''

Regular-grade gasoline, averaged nationwide, touched a record $3.057 a gallon on Sept. 2, according to the AAA, the nation's largest motoring organization. While the average pump price fell to $2.755 by Sept. 22, it was still 48 percent higher than a year ago.

...more...

[hatrack]

1. Were economists "surprised"?

Wouldn't surprise me!

[UpInArms]

2. yes, once again, "surprised" economists

Sep 27	10:00 AM	Consumer Confidence	Sep	86.6	NA	98.0	105.6	-

Anticipated 98.0
Actual report 86.6

also from the article:

The percentage of consumers that saw jobs as hard to get rose to 25.4 percent from 23.1 percent. The percentage who saw jobs as plentiful fell to 20.1 percent, compared with 23.6 percent in August.

The component of the index that tracks consumers' expectations for the next six months dropped to 71.7 from 93.3. A gauge of optimism about the present situation also fell, to 108.9 from 123.8.

[ixion]

3. indeed... who'da thunk it... it's hard work, but we're doin' a heckuva job

gotta shoot all them looters and let Big Oil take a nice ol heapin helpin of the consumers budget. :puke: :crazy: :grr:

Who could have possibly known that a horrible economy would decrease consumer confidence? :sarcasm: :eyes:

[bemildred]

4. How about "Consumer confidence collapses 18% in one month?" nt

[Roland99]

5. Holy Crap! What a drop!

[sandnsea]

6. Jan 2000 - 144

Been all downhill from there. Just to keep things in complete perspective.

http://www.pollingreport.com/consumer.htm

[llmart]

7. Everything's been all downhill since the idiot-in-chief.....

stole the election.

God, do I miss Clinton!

[WhiteTara]

10. Actually I miss Gore! n/t

[Maggie_May]

8. I'm your average Joe

I haven't been able to buy shit just surviving. I just cringing at the thought of my gas bill this winter. Wait until they see consumers spending than.

[Eurobabe]

9. New house sales in OH decimated this month

I should know, I sell them. Sheesh.