Consumer Confidence Declines in October

The Conference Board Consumer Confidence Index declined 0.4 Points to 125.9 in September. The Present Situation Index increased by 1.7 points to 172.3. The Expectations Index, based on consumers short-term outlook for income, declined 1.9 points to 94.9.

“Consumer confidence was relatively flat in October, following a decrease in September,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “The Present Situation Index improved, but Expectations weakened slightly as consumers expressed some concerns about business conditions and job prospects. However, confidence levels remain high and there are no indications that consumers will curtail their holiday spending.”

Consumers’ outlook for the labor market was also slightly less positive. The proportion expecting more jobs in the months ahead decreased from 17.6 percent to 16.9 percent, while those anticipating fewer jobs increased from 15.4 percent to 17.8 percent. Regarding their short-term income prospects, the percentage of consumers expecting an improvement increased from 19.7 percent to 21.1 percent, while the proportion expecting a decrease held steady at 6.5 percent.

Read the Conference Board release.

Share.

About Author

Tyler Mondres

Tyler Mondres is senior manager for research at ABA and a frequent contributor on fintech topics to the ABA Banking Journal.