Consumers Less Secure About Job Prospects

Consumers became more cautious about their economic futures in November following the presidential election and the renewed debate over the budget deficit, a business-financed research group reported Tuesday.

The Conference Board said its consumer confidence index declined to 113.1 in November from a revised 116.9 in October.

The monthly survey, which covers 5,000 U.S. households, is conducted for the board by National Family Opinion Inc. of Toledo, Ohio.

The survey indicated that although consumers showed more confidence in present employment conditions last month than in October, they turned less confident about the outlook for the next six months.

Deficits Major Concerns

Of those responding, 30.2% indicated that jobs were plentiful in November, compared to 29.8% in October. However, only 15.5% believed that employment conditions would improve over the next six months, down from 18.6% in October.

About 18.5% of those polled said they expected business conditions to improve in the next six months, down from 21.1% in October. Those expecting conditions to worsen rose to 8.5%, from 7.0% in October.

“Growing uncertainty about the immediate future appears to be the reason for the latest dip in consumer spirits,” said Fabian Linden, executive director of the board’s Consumer Research Center.

“The budget and trade deficits and other major economic problems, largely ignored by both candidates during the presidential campaign, are now emerging as urgent issues,” he said.