Consumer Confidence Sours
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The U.S. stock markets retreated on Tuesday after the consumer confidence index dipped more than 10 points in February, sparking concerns over the outlook for consumer spending, even after many big name retailers reported stronger-than-expected holiday season earnings.
The Conference Board, a private research group, showed that its index fell to 46.0 this month, while analysts were expecting a reading of 54.8. The drop came after a revised 56.5 reading in January, which was improved from the previous reading of 55.9.
The consumer's feelings about the current economic situation, measured in the present situation index fell to 19.4 in February from 25.2 in January, which was revised up from the previous reading of 25.0. The February reading for the present situation index was the lowest in 27 years.
Consumer confidence in the jobs market took a strong hit as well, as the percentage of respondents who think that jobs are hard to get rose to 47.7 percent in February from 46.5 percent in January. Those who think that jobs are in high abundance fell to 3.6 percent from 4.4 percent.
The percentage of respondents who see more jobs becoming available in the coming months fell as well to 13.4 percent from 15.8 percent, with the number expecting fewer jobs increasing to 24.6 percent from 18.9 percent.
As far as the confidence of consumers about the economy over the next six months, the reading fell to 63.8 from 77.8, revised from the previously reported 76.5.
Only 9.5 percent of the respondents expect an increase in their income over the next six months, while 17.2 percent expect to see a drop.
The Dow Jones Industrial is down 65 points to 10,318.40 in midday market movement on Tuesday, while the Nasdaq has shed 28.79 points to 2,213.28 and the Standard & Poor's 500 is off 10.04 to 1,097.97 on the day.
The Conference Board, a private research group, showed that its index fell to 46.0 this month, while analysts were expecting a reading of 54.8. The drop came after a revised 56.5 reading in January, which was improved from the previous reading of 55.9.
The consumer's feelings about the current economic situation, measured in the present situation index fell to 19.4 in February from 25.2 in January, which was revised up from the previous reading of 25.0. The February reading for the present situation index was the lowest in 27 years.
Consumer confidence in the jobs market took a strong hit as well, as the percentage of respondents who think that jobs are hard to get rose to 47.7 percent in February from 46.5 percent in January. Those who think that jobs are in high abundance fell to 3.6 percent from 4.4 percent.
The percentage of respondents who see more jobs becoming available in the coming months fell as well to 13.4 percent from 15.8 percent, with the number expecting fewer jobs increasing to 24.6 percent from 18.9 percent.
As far as the confidence of consumers about the economy over the next six months, the reading fell to 63.8 from 77.8, revised from the previously reported 76.5.
Only 9.5 percent of the respondents expect an increase in their income over the next six months, while 17.2 percent expect to see a drop.
The Dow Jones Industrial is down 65 points to 10,318.40 in midday market movement on Tuesday, while the Nasdaq has shed 28.79 points to 2,213.28 and the Standard & Poor's 500 is off 10.04 to 1,097.97 on the day.
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