Consumer confidence plunged in November with the index falling to 90.4 from 99.1 in October. The decline was due to a less favorable view of the job market even though October’s jobs report had the unemployment rate falling to 5 percent.
Consumers who felt that jobs were plentiful dropped from 22.7 percent to 19.9 percent. Consumers claiming jobs are hard to get increased to 26.2 percent from 24.6 percent.
Looking ahead, consumers are becoming more pessimistic about the job market. Those believing that there will be more jobs in the future fell from 14.4 percent to 11.6 percent. Those who believe there will be fewer jobs jumped from 16.6 percent to 18.7 percent.
Consumers are less inclined to believe their incomes will go up and the amount that thinks that their incomes will drop actually increased.
Consumers apparently still feel like spending on vacation as 53.4 percent intend to travel within the next six months. That is more than the 45.7 percent in August. Most intend to travel in the U.S. and not go to a foreign country.
Consumer’s appraisal of current business conditions was mixed. Heading into 2016, consumers are cautious about the labor market and expect little change in business conditions.