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U.S. consumers less confident in September

Index drops to lowest level since May on fresh worries about jobs, wages

MARKETWATCH 10:48 AM ET 09/24/13


WASHINGTON (MarketWatch) -- The confidence of Americans in the U.S. economy fell in September to the lowest level in four months amid renewed concerns about stagnant wages and the availability of good jobs.

The consumer-confidence index fell to 79.7 this month from a revised 81.8 in August, according to the nonprofit Conference Board, publisher of the report. That basically matched the 79.5 estimate of economists surveyed by MarketWatch.

"Consumer confidence decreased in September as concerns about the short-term outlook for both jobs and earnings resurfaced," said Lynn Franco, director of economic indicators at the Conference Board. "While overall economic conditions appear to have moderately improved, consumers are uncertain that the momentum can be sustained in the months ahead."

Most of the drop in the main index came from a decline in expectations for the next six months. The expectations index fell to 84.1 from 89.0.

Consumers felt OK about the economy right now. The present situation index edged up to 73.2 from 70.9.

The confidence index could experience some jolts over the next few months depending on whether U.S. lawmakers agree to a budget deal. Battles over funding for President Obama's health-care law and limits on how much money the U.S. government can borrow could lead to a partial shutdown of the government and reduce federal spending.

Similar dustups in the past have acted as a drag on U.S. growth and made Americans more anxious, at least temporarily. Jim McNerney, Boeing's CEO and the outgoing chairman of the Business Roundtable, said chief executives worry that another budget imbroglio could undermine the economy.

Half of the CEOs queried in the latest roundtable survey said the looming threat "is having a negative impact on their plans for hiring additional employees over the next six months." The roundtable represents American companies that employ 16 million workers and generate $7.4 trillion in annual revenue. (Read more about Roundtable views: http://blogs.marketwatch.com/capitolreport/2013/09/18/ceos-walking-on-eggshells-in-bitterly-divided-washington/.)

The consumer-confidence index touched a five-year high of 82.1 in June, but it's still far below its precession peak of 111.9. In good economic times, the index tends to range well above 100, and it set a record of 144.7 in 1999-2000 during the tail end of the Internet bubble.