US consumer confidence slips on outlook for economy, jobs
The Conference Board’s gauge decreased 1 point to 94.6, the lowest since April
[WASHINGTON] US consumer confidence fell in October for a third straight month on dimmer views about the outlook for the economy and labour market.
The Conference Board’s gauge decreased 1 point to 94.6, the lowest since April, data out on Tuesday (Oct 28) showed. The median estimate in a Bloomberg survey of economists called for a reading of 93.4.
A measure of expectations for the next six months fell in October to 71.5, the lowest since June, while a metric of present conditions increased.
Confidence remains stuck below levels seen last year as consumers fret about the labour market and the cost of living. Job growth has significantly slowed, inflation remains above the Federal Reserve’s target and President Donald Trump’s tariff policies continue to drive heightened economic uncertainty.
The share of consumers that said jobs were currently hard to get edged up to 18.4 per cent. At the same time, the share saying jobs were plentiful increased to 27.8 per cent.
The difference between these two – a metric closely followed by economists to gauge the job market – widened slightly.
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Expectations for the job market, however, weakened. A greater share of consumers expect fewer available jobs in the next six months, and their outlook on income prospects were less positive.
The Conference Board’s report showed buying plans for big-ticket items like homes, cars and appliances were generally muted. Vacation plans, however, picked up.
Despite underlying consumer anxiety, household spending was solid in the second quarter, and the most-recent retail sales data indicate that resilience extended into July and August.
Meanwhile, the ongoing government shutdown has left policymakers without major data at a crucial time for the economy. Several key economic reports, including the monthly employment report, are on hold. Despite the lack of updated figures, Fed officials are expected to lower interest rates on Wednesday by a quarter percentage point for a second straight meeting in an effort to bolster the job market. BLOOMBERG
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