United States: Consumer confidence down in November from multi-year high
November 25, 2014
The Conference Board consumer confidence index fell to 88.7 points in November from a revised 94.1 points in October (previously reported: 94.5 points). October’s print had represented the highest value in more than seven years. November’s reading contrasted market expectations of a rise to 96.5 points. However, the index is sitting above its average for the past 12 months and almost 17 points higher than November of last year.
November’s decrease in confidence was driven by a weakening in consumers’ expectations regarding business conditions over the next six months and their outlook on the future job market. However, their expectations regarding future income were broadly stable. Consumers had slightly less positive assessments of current economic conditions.
The director of the Board explained that, “consumer confidence retreated in November, primarily due to reduced optimism in the short-term outlook. However, income expectations were virtually unchanged and gas prices remain low, which should help boost holiday sales.”
Author: Carl Kelly, Economist