Plunge In Future Expectations Fuels 9-Point Third Quarter Drop in Overall Index
The Mass Insight Consumer Confidence Index dropped sharply in the Third Quarter of 2014, with the overall score moving down nine points from 88 to 79. This comes after a six-point jump in the Index in the Second Quarter of the year.
The drop in the overall index score was fueled by a dramatic decrease in optimism about the future—which fell an astounding 17 points since the Second Quarter. The Index’s future expectations reading now sits at just 86—the first time ithas been in the 80-range in three years—(80 in July of 2011).
This is also the first time that the overall Consumer Confidence Index has dropped below the 80-mark since October of 2011 (64). By contrast, optimism on current conditions now stands at 69—an actual increase of three points since the Second Quarter of this year. Massachusetts consumer confidence is now 12 points lower than national consumer confidence. New England confidence rose eight points to 89.
“While the long-term trend remains positive, Massachusetts residents are skittish about the future, far more so than the rest of the country” said Mass Insight President William H. Guenther. “With the upcoming gubernatorial transition, the Commonwealth needs to offer a clear, achievable strategy for creating more jobs and fueling economic growth.”