October 13, 2009 / 2:03 PM / 10 years ago

U.S. consumer confidence weakens in October - IBD

NEW YORK, Oct 13 (Reuters) - U.S. consumer confidence fell in October, and after months of fluctuations in sentiment, further negative pressure caused by mounting unemployment could hurt consumer spending, a research group said on Tuesday.

Investor’s Business Daily and TechnoMetrica Market Intelligence said their IBD/TIPP Economic Optimism Index slipped to 48.7 in October from 52.5 in September.

Readings above 50 indicate optimism, while those below 50 point to pessimism.

The index is now 0.6 points above its 12-month average of 48.1 and 4.3 points above its reading of 44.4 in December 2007, when the recession began.

“Facing a tough job market and no palpable signs of improvement, we see decline in confidence across-the-board,” said Raghavan Mayur, president of TIPP, a unit of TechnoMetrica Market Intelligence and IBD’s polling partner.

“If the sentiment continues to move into pessimistic territory, it could greatly hurt consumer spending.”

The survey’s six-month economic outlook component was down 7.4 percent at 49.7.

The IBD/TIPP surveys more than 900 adults generally in the first week of the month. (Reporting by Camille Drummond, Editing by Chizu Nomiyama)

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