U.S. consumer confidence dipped unexpectedly in October on growing pessimism about the job market and the economy, the Conference Board said Tuesday (Oct. 31).
CBS Marketewatch reported that the private research group said its consumer confidence index fell to 105.4 in October from a revised 105.9 in September.
Economists were expecting an increase to about 107.9 from the previously reported 104.5.
The index suggests “a moderate pace of economic growth and more of the same for the first few months of 2007,” said Lynn Franco, head of the research group’s consumer research center.
“October’s dip in confidence was prompted by consumers’ mixed assessment of present-day business conditions and a less favorable view of the job market,” she said.
The present situation index fell to 124.7 from 128.3. The expectations index rose to 92.6 from 91.0.
The percentage of consumers saying conditions are good rose to 28.1% from 27.3%, but the percentage saying conditions are bad also rose, to 17.1% from 15.6%.
The percentage of consumers saying jobs are plentiful declined to 25.8% from 26.2%, while the share saying jobs are hard to get rose to 22% from 20.9%.
In a separate report, the Labor Department said employment costs rose 1% in the third quarter, the most in a year and a half. Compensation costs were rising faster than inflation for the first time in two years.