New York, Feb. 24--U.S. consumers became much more cautious in February as worries about jobs mounted, the Conference Board said Tuesday.
The board's consumer confidence index plunged to 87.3 in February from a revised 96.4 in January. It's the lowest level since October. It was the largest decline in a year when American troops were preparing to invade Iraq.
Economists expected the index to fall to about 92.9, according to a survey conducted by CBS MarketWatch.
The present situation index eased to 73.1 from 79.4, while the expectations index sank to 96.8 from 107.8.
"Consumers remain disheartened with current economic conditions, and at the core of their disenchantment is the labor market," said Lynn Franco, head of the board's consumer research unit. The pace of job creation "remains too tepid to generate a sustainable turnaround in consumers' confidence."
Compared with January, more consumers thought conditions were "bad" and thought jobs were hard to get. Fewer consumers think their incomes will grow in the next six months.
Plans to buy major appliances fell sharply, while plans to buy homes or cars held up better.
