US consumer confidence falls sharply in September
US consumer confidence took a dive in September to 48.5, down from a revised 53.2 in August – the lowest since February 2010.
The reading from the closely-monitored Consumer Confidence Index from the Conference Board was worse than the 52.0 economists had expected.
Furthermore, the index is far away from the 90 points required to show that the world’s largest economy is on solid footing.
Since the index commenced in 1967, the average reading has been 95.6.
Meanwhile, the expectations index also plunged to 65.4 in September from 72.0 in August, while the present situation index dipped to 23.1 from 24.9.
Commenting on today’s figures, Lynn Franco, director of the Conference Board Consumer Research Centre said: “September’s pull-back in confidence was due to less favourable business and labour-market conditions, coupled with a more pessimistic short-term outlook.
“Overall, consumers’ confidence in the state of the economy remains quite grim,” Franco added.
Across the Atlantic, meanwhile, consumer confidence in Germany, which is the euro zone’s largest economy, surged, according to the GfK research group.
GfK said its latest German consumer climate indicator forecasted a value of 4.9 in October, following a revised reading of 4.3 in September.
Germany’s forward looking indicator, which questioned around 2,000 people, was ahead of economists’ forecasts of 4.2.