Last Update: 26-Nov-13 10:14 ET
- The Conference Board’s Consumer Confidence Index fell to 70.4 in November from an upwardly revised 72.4 (from 71.2) in October. The Briefing.com consensus pegged the index at 72.4.
- Confidence in October plummeted as concerns about the economy following the government shutdown weighed heavily on the minds of consumers. With the shutdown ending, it was expected that confidence would begin to improve.
- Just like the preliminary reading of the November University of Michigan Consumer Sentiment Index, that did not happen.
- Even though normal indicators of confidence – equity prices, gasoline costs, and labor conditions – all generally strengthened in November, doubts about economic growth, likely stemming from the poor rollout of the Affordable Care Act, lowered consumer expectations.
- Fortunately, consumption growth does not rely on sentiment levels. As long as income continues to trend higher, like it did in the October payroll data, consumption growth will follow.
- Income gains are the main catalyst for spending, yet rising levels of confidence over time tend to help on matters of discretionary spending.
|Employment ('plentiful' less 'hard to get')
|1 yr inflation expectations