U.S. Consumer Confidence Declines

The Conference Board Consumer Confidence Index declined slightly in the U.S. for October, after increasing sharply in September. The index now stands at 100.9 (1985=100), down from 101.3 in September. The Present Situation Index – based on consumers' assessment of current business and labour market conditions – increased from 98.9 to 104.6. However, the Expectations Index – based on consumers' short-term outlook for income, business, and labour market conditions – decreased from 102.9 in September to 98.4 this month. Lynn Franco, senior director of economic indicators at the Conference Board, says, "Consumers' assessment of current conditions improved while expectations declined, driven primarily by a softening in the short-term outlook for jobs. There is little to suggest that consumers foresee the economy gaining momentum in the final months of 2020, especially with COVID-19 cases on the rise and unemployment still high."