Consumers see glimmer of hope for economy but not for their own incomes

Consumer assessment of present business and labor market conditions in The Conference Board Consumer Confidence Index® declined 90 points to reach 76.4—a record month-over-month drop. Consumers believe the economy is in recession right now. In contrast to what consumers see today, their expectations for the future have improved by 7 points to 93.8. Clearly when things get worse, the future is likely to look better. Consumers think the outlook for business conditions and jobs will get better in the next six months. However, expectations for household income weakened, which does not bode well for consumer spending power once the economy opens up again.