What is happening? The Confidence Index is Decreasing!

<p>&nbsp;American consumers are now less confident as concerns about the possibility of an economic recession increase. The Conference Board, a business research group, said on October 31 that its consumer confidence index fell to 102.6 from 104.3 in September.</p><p><br /></p><p>This index measures American consumers' assessment of the current state of the economy and their outlook for the next six months.</p><p><br /></p><p><br /></p><p>An index measuring American consumers' views on income, business and the labor market in the short term fell again, to 75.6 in October from 76.4 in September. A reading below 80 for future expectations has historically signaled a possible economic recession within a year.</p><p><br /></p><p>Consumers' view of current conditions also declined this month, to 143.1 from 146.2 in September.</p><p><br /></p><p>Consumer spending accounts for about 70% of US economic activity, so economists pay close attention to consumer mood to assess how it may affect the economy more broadly.</p>