Washington, DC, November 28, 2006--Uncertainty about the strength of the economy caused the second straight monthly decline in U.S. consumer confidence in November, the Conference Board said Tuesday.
The consumer confidence index fell to 102.9 in November from a revised 105.1 in October, the private economic research group said. The index peaked at 105.9 in September.
This is the first back-to-back decline in the index since last September and October, when hurricanes ravaged the Gulf Coast region.
The decline in confidence surprised economists, who were expecting the index to increase to 106.4 from the initial October reading of 105.4.
Economists thought lower energy prices and an end to negative campaigning from the midterm election would boost confidence.
But concern about the job market and a more-guarded short-term outlook led to the drop in confidence, the Conference Board said.
Despite the weakness, Lynn Franco, director of the Conference Board's research center, said that confidence remains at a relatively high level, "suggesting the economy will continue to expand throughout the first half of next year."
In November, the present situation index fell to 123.6 from 125.1. This is the lowest level since last December. The index is seen as a good barometer of near-term spending plans.
The number of consumers saying conditions are "good" dropped to 26.5% in November from 27.9% in October. Those claiming conditions are "bad" remained steady at 16.8%.
The assessment of the labor market was less favorable than last month. Those saying jobs are "hard to get" rose to 22.4% from 21.8% in October.
The expectations index slipped to 89.2 in November from 91.9 in October.
Inflation expectations fell in November. The outlook for inflation in 12 months declined to 4.7 in November from 4.9% in October. This is the lowest level this year.
