Consumer Confidence slips
Against a backdrop of elevated gas prices and grocery bills, the closely watched Consumer Confidence Index declined in October to a reading of 102.5 (1985=100).
Still, the Conference Board’s analysis revealed an increase in intentions to purchase homes, along with intentions to buy big-ticket appliances and automobiles.
“Notably, concerns about inflation—which had been receding since July—picked up again, with both gas and food prices serving as main drivers,” said Lynn Franco, senior director of economic indicators at The Conference Board.
The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—declined sharply to 138.9 from 150.2 last month
The Expectations Index is hovering around a reading of 80.
“Looking ahead, inflationary pressures will continue to pose strong headwinds to consumer confidence and spending, which could result in a challenging holiday season for retailers. And, given inventories are already in place, if demand falls short, it may result in steep discounting which would reduce retailers’ profit margins.”
Other data from the survey:
Consumers’ assessment of current business conditions was less favorable in October.
• 17.5% of consumers said business conditions were “good,” down from 20.7%.
• 24.0% of consumers said business conditions were “bad,” up from 20.9%.
Consumers’ appraisal of the labor market was also less upbeat.
• 45.2% of consumers said jobs were “plentiful,” down from 49.2%.
• 12.7% of consumers said jobs were “hard to get,” up from 11.1%.
The monthly Consumer Confidence Survey, based on an online sample, is conducted for The Conference Board by Toluna, a technology company that delivers real-time consumer insights and market research through its innovative technology, expertise, and panel of over 36 million consumers.
