New York: Confidence of American consumers witnessed a sharp drop of 10.5 points in February on increased concerns about the job market and current business conditions, says a survey.
According to the survey by business research organisation The Conference Board, the consumer confidence index, which had increased in January to 56.5, dropped to 46% in February.
It said that the confidence level, which had been improving for the past few months, took a turn for the worse with fewer consumers anticipating an improvement in business conditions and the job market over the next six months.
“Consumer Confidence, which had been improving over the past few months, declined sharply in February. Concerns about current business conditions and the job market pushed the Present Situation Index down to its lowest level in 27 years,” The Conference Board Consumer Research Center, director Lynn Franco said.
“Consumers also remain extremely pessimistic about their income prospects. This combination of earnings and job anxieties is likely to continue curb spending,” Franco added.
Moreover, consumers’ assessment of the labour market was also pessimistic. Those saying jobs are “hard to get” rose to 47.7% from 46.5%, while those saying jobs are “plentiful” decreased to 3.6% from 4.45%.