Consumer confidence in the US economy dropped in September, a research group said today, weighed down by lingering worries about a weak job market. The Conference Board, a business research group based in New York, said its closely watched index of consumer confidence fell to 76.8 from a revised 81.7 in August. Economists, on average, expected confidence to fall to 80.5. Separately, Chicago-area purchasing managers said their closely watched index of regional manufacturing activity dropped to 51.2 in September from 58.9 in August. Economists had forecast the index at 57.0. Consumer confidence is watched closely, since consumer spending makes up more than two-thirds of the total economy.
The Conference Board's "expectations" index, which measures how consumers feel about the future, fell to 88.4 from a revised 94.9 in August. The "present situation" index dropped to 59.5 from a revised 62. "The lack of improvement in labour market conditions continues to dampen consumers' spirits," said Lynn Franco, director of the Conference Board's Consumer Research Centre. ///www.fxcentre.com