United States: Consumer confidence retreats in October
October 27, 2015
The Conference Board consumer confidence index decreased to 97.6 points in October from a revised 102.6 points in September (previously reported: 103.0 points). October’s result contrasted market expectations of 102.8 points and does not bode well for consumer spending, the motor of the economy, in the months to come.
October’s moderation in confidence was driven by a steep decline in consumers’ sentiment regarding current economic conditions, including job market opportunities. Meanwhile, consumers’ expectations on conditions in the next six months were slightly weaker.
The director of the Board emphasized that, “consumer confidence declined in October, following September’s modest gain. Consumers were less positive in their assessment of present-day conditions, in particular the job market, and were moderately less optimistic about the short-term outlook. Despite the decline, consumers still rate current conditions favorably, but they do not anticipate the economy strengthening much in the near-term.”
Author: Carl Kelly, Economist