Consumer Confidence Declines; Wages, Benefits Up 1%, 2-Year Best Quarterly Pace
Consumers'
confidence in the economy weakened in October on job worries, according to
The Conference Board whose consumer
confidence index edged down to 105.4, from a revised 105.9 in
September. October's dip in confidence was prompted by consumers' mixed
assessment of present-day business conditions and a less favorable view of
the job market," said Lynn Franco, director of The Conference Board
Consumer Research Center, in a statement. "Consumers' short-term
expectations posted a slight improvement, but the outlook for the labor
market remains mixed."
The Labor Department reported that its Employment Cost Index was up 1% in the third quarter, compared to a 0.9% rise in the April-June period. It was the biggest quarterly increase since a similar 1% rise in the second quarter of 2004.
For the third quarter, benefit costs rose by 1.1 percent, up from a 0.8 percent gain in the second quarter. Wages and salaries were up 0.9 percent, matching the increase in the second quarter.
For the 12 months ending in September, overall compensation costs were up 3.3%, compared to a 3% rise for the 12 months ending in September 2005.
Wages and salaries are up 3.2% over the past year, a significant rise from the 2.3% gain for the 12 months ending in September 2005. Benefit costs, however, were up 3.3% for the year, down from a 5% rise for the year ending in September 2005.
Compensation costs for the private sector rose 0.9% from June to September, after advancing 0.8% in the prior quarter. For state and local government workers, compensation costs increased 1.4% from June to September, after increasing 1.1% for the quarter ended in June.
