DATE=9/30/03

TYPE=CORRESPONDENT REPORT

TITLE=N-Y/CONSUMER CONFIDENCE FALLS (L-O)

NUMBER=2-308073

BYLINE=LEAH KRAKINOWSKI

DATELINE=NEW YORK

INTERNET=

VOICED AT:

INTRO: A dismal job outlook has eroded Americans' belief that the nation's economy is finally recovering after a three-year slump. From V-O-A's New York Bureau, Leah Krakinowski has the story.

TEXT: Consumers were expecting the job market, a mainstay of America's economy, to perk up over the next several months. But a new survey from the Conference Board, the private business research group that conducted the survey of five thousand U-S households, shows consumer confidence fell well below earlier gains this past summer.

Lynn Franco is director of the Conference Board's research center.

/// FRANCO ACT ///

The labor market is definitely having an impact on consumer spirits. However, they still remain cautiously optimistic that better times are ahead.

/// END ACT ///

Ms. Franco says volatility in the U-S economy is nothing new to American consumers, and that is why they still believe conditions will improve.

/// 2ND FRANCO ACT //

It is expected until the labor market shows signs of life. So, it is likely we are going to continue to experience ups and downs.

/// END 2ND ACT ///

The Conference Board asks Americans of different ages, financial backgrounds and regions of the country, to assess traditional economic indicators, such as business, and employment conditions.

In the September survey, this index of consumer confidence dipped by nearly five points to 76-point-eight, from 81-point-seven in August. (SIGNED)

NEB/LK/BJS/RH/RAE