Consumer confidence hits 14-month low

The Conference Board's Consumer Confidence Index took a much more significant downward turn in November after a moderate decline in October.

The index now stands at 90.4 -- its lowest since September 2014 -- after declining to a revised reading of 99.1 in October.

“Consumer confidence retreated in November, following a moderate decrease in October,” said Lynn Franco, director of economic indicators at The Conference Board. “The decline was mainly due to a less favorable view of the job market. Consumers’ appraisal of current business conditions, on the other hand, was mixed. Fewer consumers said conditions had improved, while the proportion saying conditions had deteriorated also declined. Heading into 2016, consumers are cautious about the labor market and expect little change in business conditions.”

The Present Situation Index decreased from 114.6 to 108.1 in November, with those saying business conditions are "good" decreasing from 26.8% to 24.4%. However, those claiming business conditions are “bad” also decreased from 18.3% to 16.9%. As for the current job market, those stating jobs are “plentiful” decreased from 22.7% to 19.9%, while those claiming jobs are “hard to get” increased to 26.2% from 24.6%.

Meanwhile, the Expectations Index dropped from 88.7 to 78.6. Those expecting business conditions to improve over the next six months decreased from 18.1% to 14.8%, while those expecting business conditions to worsen increased slightly to 11.0% from 10.4%.

Consumers’ outlook for the labor market was also more pessimistic. Those anticipating more jobs in the months ahead fell from 14.4% to 11.6%, while those anticipating fewer jobs increased from 16.6% to 18.7%. The proportion of consumers expecting their incomes to increase declined from 18.1% to 17.2%, while the proportion expecting a decline increased from 10.5% to 11.8%.