The Conference Board Consumer Confidence Index, which had rebounded in October to a seven-year high of 94.1, declined in November. The Index now stands at 88.7.
"Consumer confidence retreated in November, primarily due to reduced optimism in the short-term outlook," said Lynn Franco, Director of Economic Indicators at The Conference Board. "Consumers were somewhat less positive about current business conditions and the present state of the job market; moreover, their optimism in the short-term outlook in both areas has waned. However, income expectations were virtually unchanged and gas prices remain low, which should help boost holiday sales."
Consumers' assessment of present-day conditions was moderately less favorable in November than in October. The proportion saying business conditions are "good" decreased from 24.7 percent to 24.0 percent, while those claiming business conditions are "bad" increased from 21.3 percent to 22.4 percent.
Consumers' optimism, which improved last month, retreated in November. The percentage of consumers expecting business conditions to improve over the next six months decreased from 19.4 percent to 17.6 percent, while those expecting business conditions to worsen rose from 8.9 percent to 10.7 percent.
The proportion of consumers expecting growth in their incomes edged down from 16.7 percent to 16.3 percent, while the proportion expecting a drop in income was virtually unchanged at 11.4 percent compared to 11.3 percent in October.
The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen.