The S&P 500 (SPX) is slightly in the red after The Conference Board’s Consumer Confidence Index (CCI) fell to a 5-month low.
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In September, the preliminary CCI dropped by 3.6 points, the largest amount in a year, to 94.2. A reading of 100 or above signals optimism about the economy, while a reading of 80 or below points to pessimism.
“The share of consumers thinking that a recession is very likely over the next 12 months rose slightly in September, to the highest level since May,” said The Conference Board.
Consumers Worry About Jobs but Stay Optimistic on Stocks
Consumers are also worried about the labor market, with 26.9% of respondents saying that jobs were “plentiful” compared to 30.2% in August. These concerns have been echoed by the Fed, which recently cut rates by 25 bps in order to address unemployment risks.
The view of current business conditions also took a hit, with 19.5% of consumers saying conditions are “good” compared to 21.8%. However, with SPX up by 13% year-to-date, consumers remain optimistic about stocks, with 48.9% of consumers expecting higher stock prices over the next 12 months.
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