Consumers More Hopeful; Help-Wanted Ads Decline

Consumers have regained virtually all the confidence they lost as a result of the October stock market crash, but there are indications that employers could be cutting back their hiring plans, according to two surveys released Monday.

The Conference Board, in issuing its monthly consumer confidence index, said consumers have been heartened by continuing strength in the economy.

However, the business research organization said consumers also may be feeling more optimistic because their paychecks are larger because of tax cuts that took effect Jan. 1.

The consumer confidence index was 113.9 points in February, up from January’s 109.9 points and 100.8 in November, after the crash.

The index, which uses a 1985 base of 100, stood at 115.1 in October, before the Oct. 19 stock collapse.

The Conference Board’s help-wanted index painted a somewhat less optimistic picture. The Index, which reflected the amount of help-wanted ads in 51 major newspapers across the nation, declined to 153 in January from 155 in December.

The index, which uses a 1967 base of 100, reflects changed in demand for labor and general business conditions.

Kenneth Goldstein, a Conference Board economist, said the drop in the index signaled a slowdown in hiring plans by employers.

“Recent dips in want-ad volume suggest that companies are taking a hard look at their expansion plans,” he said.

Help wanted advertising volume fell in six of nine regions of the country: New England, the Rockies, Pacific, South Atlantic, Middle Atlantic and East South Central. Ad volume increased in the West North Central, East North Central and West South Central areas.