Consumer Confidence in U.S. Slumps by Most Since August 2011
Source: Bloomberg
By Ben Schenkel - Oct 29, 2013
Confidence among U.S. consumers declined in October by the most since August 2011 as the budget impasse and debt-ceiling negotiations in Washington took a toll on outlooks.
The Conference Board’s index slumped to 71.2 from a revised 80.2 last month, the New York-based private research group said today. The median forecast in a Bloomberg survey of economists called for a decrease this month to 75. The October reading was the weakest in six months.
The partial shutdown of federal agencies for half the month pushed consumer expectations to a seven-month low as the economy shows signs of cooling. Limited employment and wage gains, along with the prospect of another budget battle early next year, raise the risk of restrained holiday sales.
“What we’re seeing is more hesitancy among consumers given the fiscal policy uncertainty and the absence of confidence about future employment prospects,” said Michael Brown, an economist at Wells Fargo & Co. in Charlotte, North Carolina, who projected a reading of 71.5. “It’s very clear that consumers are going into this holiday season more restrained than last year in terms of the pace of spending.”
Read more: http://www.bloomberg.com/news/2013-10-29/consumer-confidence-index-in-u-s-decreased-to-71-2-in-october.html
This certainly doesn't bode well for the upcoming holiday shopping season.
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