United States: Consumer confidence falls sharply in October
October 29, 2013
In October, the Conference Board consumer confidence index fell from September's revised 80.2 points to 71.2 points. The reading was below market expectations of a fall to 75.0 points.
The Conference Board suggested that consumers' less positive assessment of the economy in October stems from recent political events. The director of the Board explained that, "consumer confidence deteriorated considerably as the federal government shutdown and debt-ceiling crisis took a particularly large toll on consumers' expectations."
October's decrease in confidence was mainly driven by a sharp decline in consumers' expectations regarding their personal finances over the next 12 months. Households surveyed expressed a moderately more negative outlook with respect to their current financial situations. Respondents' assessment of the future job market was also more pessimistic; fewer people anticipated more jobs in the coming months.
Author: Carl Kelly, Economist