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CONSUMER CONFIDENCE FALLS AS JOB WOES LOOM

NEW YORK -- Consumers aren't expecting a lot of good news over the next six months. A decline in October's Consumer Confidence Index to 92.8 from 96.7 last month was dragged down by a 5.9% drop in the Expectations Index, which fell to 92 from 97.7 in September.The fall in the confidence index represents the third consecutive monthly decline, hitting its lowest level since March. The decline also was

NEW YORK -- Consumers aren't expecting a lot of good news over the next six months. A decline in October's Consumer Confidence Index to 92.8 from 96.7 last month was dragged down by a 5.9% drop in the Expectations Index, which fell to 92 from 97.7 in September.

The fall in the confidence index represents the third consecutive monthly decline, hitting its lowest level since March. The decline also was steeper than expected. Topping the list of concerns of those polled were fewer jobs, as well as a lack of improvement in their income.

"Subdued expectations, as opposed to eroding present-day conditions, were the major cause behind October's decline in consumer confidence," said Lynn Franco, director of The Conference Board's Consumer Research Center, which compiles the index.

Franco said while consumers' assessment of the labor market improved, the gain was not enough to ease concerns about future job growth.

Meanwhile, the Present Situation Index, a component of the Consumer Confidence Index, dipped to 94.2 in October from 95.3 in September.

According to October's survey, consumers were cautious about the future, with those anticipating conditions to worsen increasing to 10.3% from 9.4% in the prior survey. Consumers expecting business conditions to improve fell to 20.6% from 21.6%.

On the job front, those expecting fewer jobs to become available jumped to 18.4 from 16.2 last month. In addition, consumers expecting their incomes to improve over the next six months dipped to 18.4% from 20%.

While the consensus forecasts by economists pegged the index at 94, the steeper decline didn't seem to be a problem for some.

Maury Harris, chief U.S. economist at UBS, wrote in a research note that "weaker assessments of the future accounted for most of the deterioration" in the index, while the impact from a wave of hurricanes last month understated the strength of the labor market. He still expects hiring to rebound to 225,000 in October from 96,000 in September.

"High energy prices, a weaker stock market and hurricanes likely have sapped confidence in the future," Harris said.

Economist Stephen Gallagher at SG Cowen wrote that the pullback in consumer confidence was a "disappointment," but noted the weaker view of the future must be conditioned on worries over oil prices and, to a lesser extent, Tuesday's presidential election.