clarinews@clarinet.com (02/02/90)
NEW YORK (UPI) -- Consumer confidence in the economy declined for the third consecutive month to the lowest level since the 1987 stock market crash but still does not signal a recession, the Conference Board reported Thursday. In its most recent monthly survey of 5,000 households, the consumer confidence index dropped eight points to 105.1 ``its lowest level since November 1987, when the index registered 100.8 following the stock market crash,'' the conference board said. A non-profit organization supported by member companies, the board set 1985 as 100 on the index. ``The present level of consumer confidence does not yet signal a likely recession in the coming months. Still, the size of the decline must be regarded as a possible ... indication of economic troubles ahead,'' said Fabian Linden, the board's director of consumer research. The survey showed people have not changed their buying plans although they are less comfortable with the current situation and less optimistic about the next six months. On the employment outlook, pessimists outnumbered optimists for the first time since the 1987 crash and only 16.2 percent believed business conditions would improve, the board said. The portion of people planning to buy a car dropped slightly to 6.9 percent, from 7.1 percent in December. The January percentage was the same as November. Those planning to purchase a home were virtually the same -- 3.4 percent versus December's 3.3 percent. The percentage planning to buy major appliances rose slightly from 28.8 percent in December to 30 percent in January with refrigerators jumping from 4.1 to 5.1 percent and air conditioners from 1.7 to 2.6 percent. TV sets fell from 7.9 percent to 6.6 percent in January, the board said.