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To: KaiserSosze who wrote (46270)	10/27/1999 8:41:00 AM
From: T L Comiskey	Respond to of 152472

Consumer Confidence Drops October Data Marks Fourth Straight Decline A fall-off in consumer confidence may mean Fed interest rate hikes are working to slow the economy. (ABCNEWS.com) By Rachel Beck The Associated Press N E W Y O R K, Oct. 25 ? Consumer confidence fell sharply in October, extending its decline to a fourth straight month and suggesting that the Federal Reserve has succeeded in cooling off the economy by raising interest rates. The Conference Board said today that its index of consumer confidence, which is a measure of consumers? willingness to spend, fell to 130.1 in October from a revised 134.2 in September. The drop was greater than analysts had expected. Now the index is nearly nine points below its peak of 139 in June, which was the highest reading in more than 30 years. Consumer sentiment is an important economic indicator, since consumer spending accounts for two-thirds of the nation?s overall economic activity. Wall Street Eyes Data The Federal Reserve has twice this year raised interest rates to try to keep the economy from overheating as it attempts to head off a resurgence of inflation. In recent months, economists have been scouring new data looking for any signs of a slowdown, which could give Fed policy-makers reason to leave rates unchanged when they meet again Nov. 16. Worries about rising interest rates have shaken Wall Street, sending stocks on a wild ride over the last few months. The Dow Jones industrial average reached a record of 11,326.04 in Aug. 25, but fell as low as 10,019.71 on Oct. 15. The blue-chip index was trading at 10,356.26, up 6.33 points at midmorning. ?The leading economic numbers and stock market volatility are sending mixed signals to consumers,? said Lynn Franco, director of the Conference Board?s consumer research center. The index that measures feelings about present conditions fell 2.8 points to 173.5, while the index that measures expectations for the next six months dropped 5.1 points to 106.2. Consumers More Pessimistic More consumers think that current business conditions are bad and that jobs are hard to find. The survey also found more consumers expect business conditions to get worse in the next six months, and that there will be fewer jobs and smaller paychecks. While consumers are pessimistic about what?s ahead, they are yet to curb their spending, however. More Americans plan to buy a car, a major appliance for their home or go on a vacation in the next six months, the survey said. The consumer confidence survey is based on a poll of 5,000 households conducted by NFO Research Inc. of Greenwich, Conn. The index has a base of 100, set in 1985.