Consumer confidence drifts down

Consumer confidence continued to decline this month, due to apprehension about the short-term market outlook, volatility in the financial markets and rising gasoline prices. The Conference Board Consumer Confidence Index fell to a reading of 87.3 for the month of November, down from a reading of 95.2 in October. The Present Situation Index, which measures how shoppers feel now about the economy, decreased to 115.4, from 118.0 in October. “Consumers’ apprehension about the short-term outlook is being fueled by volatility in financial markets, rising prices at the pump and the likelihood of larger home heating bills this winter,” said Lynn Franco, director of The Conference Board Consumer Research Center, according to a statement. The Expectations Index, which measures shoppers' outlook over the next six months, declined to 68.7, from 80.0. “Despite this rather bleak outlook, consumers have not lost their holiday spirit,” she said, noting that consumers anticipate spending more on gifts this year.