Consumer Confidence Falls Sharply

The Conference Board’s Consumer Confidence Index tumbled in February as consumers registered worries about high unemployment and earning power.
 
The board said Tuesday that the index fell to 46.0 from 56.5 in January. The Present Situation Index slid to 19.4 from 25.2 — the lowest level in 27 years — and the Expectations Index declined to 63.8 from 77.3.
 
“Concerns about current business conditions and the job market pushed the Present Situation Index down to its lowest level in 27 years,” said Lynn Franco, director of The Conference Board Consumer Research Center. “Consumers also remain extremely pessimistic about their income prospects. This combination of earnings and job anxieties is likely to continue to curb spending.”
 
The drop in the overall index followed three straight months of gains.
 
For complete coverage, see Wednesday’s WWD.