Consumer confidence slides
WASHINGTON – Americans turned slightly more anxious about the job market this month.
The Conference Board’s consumer confidence index fell to 97.6 in October, down from a nine-month high of 102.6 in September.
“Consumers still rate current conditions favorably, but they do not anticipate the economy strengthening much in the near-term,” said Lynn Franco, director of economic indicators at the Conference Board.
Fewer people surveyed for the business research group described jobs as “plentiful” compared with September, with that measure slipping to 22.2 percent from 24.8 percent.
The decline likely reflects the results of two consecutive jobs reports. Employers added just 142,000 jobs in September and 136,000 jobs in August, after routinely chalking up monthly net jobs gains in excess of 200,000.
Global pressures shifted more of the burden for economic growth onto U.S. consumers – an uneasy transition in recent months. Auto sales, home-buying and spending at restaurants advanced. But continued gains will hinge, in part, on steady job gains.
Many economists said overall growth was muted during the most recent financial quarter. The private forecaster Macroeconomic Advisers said Monday annualized economic growth in the July-September quarter is tracking 1.5 percent, down from 3.9 percent in the prior quarter.
Consumer spending accounts for 70 percent of all U.S. economic activity. But its significance increased as the global economy struggled.
Economic growth in China was slowing, prompting its central bank to cut interest rates last week in hopes of boosting the world’s second largest economy. A less robust China has hit prices for oil, coal and other commodities.
As a result of less demand, oil costs have nearly halved to roughly $44 a barrel over the past year. The cheaper oil hammered emerging economies such as Brazil and Russia, in addition to many Middle Eastern producers.
The European economy struggled to grow at all, advancing at an annual pace of less than 2 percent.
The result of slower economic growth worldwide was a stronger dollar, making U.S. goods more expensive abroad and reducing exports. The lower oil costs also have damaged the U.S. energy sector, forcing layoffs among drilling companies and leading to cutbacks on orders for pipeline and equipment.