CONSUMER CONFIDENCE PLUNGES AGAIN

November 1, 2001

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Consumer confidence plummeted this month to its lowest level in more than seven years as the Sept. 11 terrorist attacks exhausted Americans’ optimism about job security and the economy. The New York-based Conference Board
yesterday announced that its Consumer Confidence Index sank to 85.5 from 97 in September; analysts were expecting a reading of 96.

“Widespread layoffs and rising unemployment do not signal a rebound in confidence anytime soon,” said Lynn Franco, director of the Conference Board’s Consumer Research Center.

The Conference Board said consumers’ assessment of the current economic climate grew more pessimistic over the past month. Consumers rating current business conditions as ‘bad’ rose to 20.6 percent in October from 18.3 percent in September, while those who thought conditions were ‘good’ declined to 18.9 percent from 22.3 percent.

The board also said that expectations for the next six months continued to deteriorate. The percentage of consumers who think business conditions will worsen rose to 20.3 percent from 15.8 percent, while those expecting fewer jobs climbed to 28.9 percent in October from 22.5 percent in September.