NEW YORK — Americans’ confidence in the economy stayed stuck in gloomy territory in October, with Wall Street’s gains in recent months not boosting spirits much.
Coaxing shoppers out of their shells will be the major challenge for retailers heading into the holiday season. That could mean they’ll continue to push big discounts.
The confidence report, released Tuesday by the Conference Board, comes in the face of a rebounding stock market. But many shoppers, grappling with weak job prospects and a renewed slide in home prices, see their personal financial health tied more to Main Street, not Wall Street. Another report, released Tuesday from a key home-pricing index, showed home prices are weakening across the country.
“The things that matter most to consumers are either not improving or worsening,” said Mark Vitner, an economist at Wells Fargo. “We are definitely going to see a heavily promotional holiday shopping season.”
The Conference Board, a private research group, said its Consumer Confidence Index rose to 50.2 from a revised 48.6 in September. Economists surveyed by Thomson Reuters expected 49.2.
An index of 90 indicates a healthy economy. That hasn’t been approached since the recession began in December 2007. Economists watch confidence closely because consumer spending accounts for about 70 percent of U.S. economic activity and is critical to a strong rebound.
While fears of a double-dip recession have eased, companies aren’t making a lot of job offers. September unemployment remained stuck at 9.6 percent. The Associated Press
