Consumer confidence dropped in October.
The Conference Board’s consumer confidence index came in at 97.6, while economists had expected the index to remain unchanged from the prior period at 103.
The Conference Board’s Lynn Franco said in the report:
Consumer confidence declined in October, following September’s modest gain. Consumers were less positive in their assessment of present-day conditions, in particular the job market, and were moderately less optimistic about the short-term outlook. Despite the decline, consumers still rate current conditions favorably, but they do not anticipate the economy strengthening much in the near-term.
The share of consumers that said jobs were “plentiful” fell to 24.8% from 22.2%. The share of people who said jobs were “hard to get” rose to 25.8% from 24.9%. And, the percentage of consumers who expected more jobs in the coming months fell slightly, while the portion anticipating fewer jobs rose.
In a note to clients, Pantheon Macroeconomics’ Ian Shepherdson said the drop in confidence was a delayed reaction to the recent sell-off in stocks.
“We feared a reckoning this month, but the drop is bigger than we expected”, Shepherdson wrote. “With all the other surveys recovering most of the lost ground in their latest iterations, we now expect the Conference Board’s measure to do the same in Nov.”
Shepherdson added that the most important thing for GDP is consumer spending, not sentiment.