US Consumer Confidence Falls by Most Since April on Economy
US consumer confidence slid in November by the most in seven months on growing anxiety about the labor market and the economy.
The Conference Board’s gauge decreased 6.8 points to 88.7, data out Tuesday showed. The figure was weaker than all estimates in a Bloomberg survey of economists.
A gauge of expectations for the next six months declined to the lowest level since April, while measure of present conditions slumped to a more than one-year low.
The ongoing slide in consumer sentiment reflects lingering concerns about the impact of persistently high prices and a cooling labor market on Americans’ finances as well as the broader economy.
Recent hiring has largely been concentrated in just two industries — health care and hospitality — and the unemployment rate has steadily ticked higher. Companies announced a wave of layoffs in October, fueling consumers’ anxiety about their jobs.
“Consumers’ write-in responses pertaining to factors affecting the economy continued to be led by references to prices and inflation, tariffs and trade, and politics, with increased mentions of the federal government shutdown,” Dana Peterson, chief economist at the Conference Board, said in a statement. The federal government reopened in mid-November after the longest closure in history.
At the same time, Americans are still spending. Government figures out earlier on Tuesday showed retail sales moderated in September after several robust months. As for November, the Conference Board’s report showed buying plans for big-ticket items, including cars and major appliances, declined. Home-buyer plans also fell.
The Conference Board’s report showed a still-elevated share of consumers said jobs were currently hard to get. The share noting jobs were plentiful fell. The difference between these two, which can offer insight into hiring trends, declined to one of the lowest levels since the pandemic.
The report is consistent with a separate measure of consumer sentiment. The University of Michigan’s gauge sank to one of the lowest levels on record, as Americans’ views about their personal finances deteriorated.
The Conference Board’s index focuses more on labor market conditions, whereas the University of Michigan survey emphasizes views about personal finances and the cost of living.
Source : Bloomberg.com
