United States: Consumer confidence falls again in November, hits 14-month low
November 24, 2015
The Conference Board consumer confidence index decreased to 90.4 points in November from a revised 99.1 points in October (previously reported: 97.6 points). November’s result contrasted market expectations of 99.6 points and marked the lowest reading since September of last year. The weakening in confidence does not bode well for consumer spending, the motor of the economy, during the holiday shopping season.
November’s moderation in confidence was driven by a steep decline in consumers’ expectations on conditions in the next six months, which fell more than 10 points and hit the lowest level since February of last year. Consumers’ expectations regarding business conditions and employment prospects in the coming months were notably lower. Sentiment regarding current economic conditions was also down, although not as much.
The director of the Board emphasized that, “the decline was mainly due to a less favorable view of the job market. Consumers’ appraisal of current business conditions, on the other hand, was mixed. Fewer consumers said conditions had improved, while the proportion saying conditions had deteriorated also declined. Heading into 2016, consumers are cautious about the labor market and expect little change in business conditions.”
Author: Carl Kelly, Economist