2023-10-31 16:17:10
Consumer confidence deteriorated once more in the United States in October, for the third month in a row, with consumers showing more concern regarding the current situation despite good macroeconomic indicators.
The index fell to 102.6 points, the Conference Board said Tuesday, from 104.3 points in September, according to upwardly revised data. The drop is, however, less steep than expected since analysts anticipated 100 points, according to the briefing.com consensus.
“Consumers remain concerned regarding rising prices in general, and particularly for food and gasoline. They also express concern regarding the political situation and rising interest rates,” Dana explained. Paterson, chief economist of the Conference Board, quoted in the press release.
The current situation index is the one that experienced the most significant drop, going from 146.2 points in September to 143.1 points in October.
A decline which can be explained by “a less optimistic view of the business climate. Concerning the employment situation, more consumers believe that there are ‘a lot’ of jobs compared to September”, detailed Ms. Peterson .
The index measuring expectations is also down but less marked, falling to 75.6 points, compared to 76.4 points a month earlier.
The main concern is that interest rates will continue to rise in the coming months and that inflation might remain higher for longer.
The Federal Reserve (Fed) began its meeting in the morning to decide whether it will once once more increase its interest rates, currently located in a range of 5.2 to 5.5%.
The vast majority of analysts, however, anticipate a new pause, which would be the third in the last four Fed meetings, despite inflation which remains above the 2% objective.
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