Johnson County consumer confidence hits record low
Kansas City Business Journal
The Johnson County Consumer Confidence Index plunged 16.7 points in October to a record low of 74.1, according to County Economic Research Institute Inc.
The index is more than 13 points below its previous record low set in June. The Johnson County index was 90.8 in September and 118.5 in October 2007.
The U.S. Consumer Confidence Index also fell to a record low, dropping 23 points to 38 in October. The U.S. index was 61.4 in September and 95.2 in October 2007.
The index number is relative to 100 for the 1985 base year.
“The impact of the financial crisis over the last several weeks has clearly taken a toll on consumers’ confidence,” Lynn Franco, director of The Conference Board Consumer Research Center, said in a release. “The decline in the Index is the third largest in the history of the series and the lowest reading on record. In assessing current conditions, consumers rated the labor market and business conditions much less favorably, suggesting that the fourth quarter is off to a weaker start than the third quarter. Looking ahead, consumers are extremely pessimistic, and a significantly larger proportion than last month foresees business and labor market conditions worsening. Their earnings outlook, as well as inflation outlook, is also more pessimistic, and this news does not bode well for retailers who are already bracing for what is shaping up to be a very challenging holiday season.”
CERI conducts the Johnson County Consumer Confidence Survey monthly and bases it on a representative sample of households in the county. CERI uses the same methodology as The Conference Board, making the Johnson County indices directly comparable to The Conference Board’s for the nation.
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