WASHINGTON – United States consumer confidence unexpectedly fell to a four-month low as economic expectations dimmed, a warning sign that the consumer spending that’s been propping up the expansion may face challenges.
The Conference Board index, monitored by analysts as a signal of future consumer spending, dropped in October to 125.9 for a third-straight decline, according to the data. The reading missed the median forecast in a survey of economists, who had projected an increase. At the same time, the measure of views on present conditions rose, keeping it near historical highs.
Key insights
- The unexpected decline underscores how weakness in some corners of the economy may be spreading to the consumer. A key manufacturing gauge has fallen deeper into contraction and the labor market, while still robust, has shown some cracks recently with slower wage growth and a weaker pace of hiring.
- The report contrasts with other data on consumer confidence from the University of Michigan survey showing that sentiment rose in October as both current conditions and expectations increased.
Katia Dmitrieva is a reporter for Bloomberg News.
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