Consumers see economy stuck in ‘low gear’

Consumer confidence plummeted this month to its fifth lowest reading on record as consumers fretted over worsening business conditions and a weakening job market. “Consumers’ assessment of present-day conditions continues to grow more negative and suggests the economy remains stuck in low gear,” Lynn Franco, director of The Conference Board Consumer Research Center, said in a statement. “Perhaps the silver lining to this otherwise dismal report is that consumer confidence may be nearing a bottom.” The Conference Board Consumer Confidence Index fell to 50.4, from 58.1 last month, the worst reading since February 1992, according to the New York-based research company. The Present Situation Index, which measures how consumers feel about current economic conditions, decreased to 64.5, from a reading of 74.2 last month. The Expectations Index, which measures consumers' outlook for the next six months, declined to 41.0, from 47.3 last month. The percentage of consumers who expect business conditions to worsen over the next six months rose to 33.9%, from 32.9% last month. Those who expect fewer jobs to be available in the months ahead increased to 35.5%, from 32.3%. TNS Financial Services of London administers the monthly Consumer Confidence Survey, which is based on a representative sample of 5,000 U.S. households.