Consumer confidence in the United States fell for a third straight month in October as gloomier economic forecasts and rising prices dampened optimism.&nbsp;

Data released on Tuesday showed that The Conference Board's index dropped from 104.3 in September to 102.6 last month, which is a five-month low.&nbsp;

The group's current conditions index hit a one-year low of 143.1. The index of consumer confidence in the next six months -- Expectations Index -- dropped to its lowest level in five months. Inversely, a gauge of expected inflation rose last month.&nbsp;

High prices have continued to put pressure on Americans. Even though inflation has eased dramatically over the past year, its residual effects prevent a full confidence recovery.

"Consumers continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular. Consumers also expressed concerns about the political situation and higher interest rates," Dana Peterson, Chief Economist at The Conference Board, said in a press release.&nbsp;

Moreover, consumers expressed worries about the Israel-Hamas war impacting the US economy. The Conference Board report showed that the decline in consumer confidence was evident across householders aged 35 and up, and not limited to any one income group.&nbsp;

The dip in consumer confidence comes at a time when&nbsp;the US economy has shown remarkable resilience. The US economy grew almost 5 per cent in the July-September quarter, as higher wages from a tight labor market helped to fuel consumer spending and businesses restocked to meet the strong demand.&nbsp;

"Not only is the economy surprisingly resilient, we also got productivity-driven growth for two consecutive quarters in 2023, meaning the business cycle still looks very solid," Reuters quoted Brian Bethune, an economics professor at Boston College, as commenting on the report by the&nbsp;Commerce Department's Bureau of Economic Analysis.&nbsp;

However, the latest report showed that consumer fears about an impending recession remain elevated, with the group anticipating a short and shallow economic contraction in the first half of 2024.&nbsp;

On the employment front, reports of "plentiful" employment fell for the fourth consecutive month in October. But for the first time since June, the gap between those who think jobs are "plentiful" and those who say they are "hard to get" widened. This is a key indicator for economists tracking the health of the labour market.

(With inputs from agencies)

Consumer confidence in the United States fell for a third straight month in October as gloomier economic forecasts and rising prices dampened optimism. Data released on Tuesday showed that The Conference Board's index dropped from 104.

Consumer confidence in the United States fell for a third straight month in October as gloomier economic forecasts and rising prices dampened optimism. Data released on Tuesday showed that The Conference Board's index dropped from 104.3 in September to 102.6 last month, which is a five-month low. The group's current conditions index hit a one-year low of 143.1. The index of consumer confidence in the next six months -- Expectations Index -- dropped to its lowest level in five months. Inversely, a gauge of expected inflation rose last month. High prices have continued to put pressure on Americans. Even though inflation has eased dramatically over the past year, its residual effects prevent a full confidence recovery. "Consumers continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular. Consumers also expressed concerns about the political situation and higher interest rates," Dana Peterson, Chief Economist at The Conference Board, said in a press release. Moreover, consumers expressed worries about the Israel-Hamas war impacting the US economy. The Conference Board report showed that the decline in consumer confidence was evident across householders aged 35 and up, and not limited to any one income group. The dip in consumer confidence comes at a time when the US economy has shown remarkable resilience. The US economy grew almost 5 per cent in the July-September quarter, as higher wages from a tight labor market helped to fuel consumer spending and businesses restocked to meet the strong demand. "Not only is the economy surprisingly resilient, we also got productivity-driven growth for two consecutive quarters in 2023, meaning the business cycle still looks very solid," Reuters quoted Brian Bethune, an economics professor at Boston College, as commenting on the report by the Commerce Department's Bureau of Economic Analysis. However, the latest report showed that consumer fears about an impending recession remain elevated, with the group anticipating a short and shallow economic contraction in the first half of 2024. On the employment front, reports of "plentiful" employment fell for the fourth consecutive month in October. But for the first time since June, the gap between those who think jobs are "plentiful" and those who say they are "hard to get" widened. This is a key indicator for economists tracking the health of the labour market. (With inputs from agencies)

US consumer confidence hits a five-month low

UK consumer confidence unexpectedly took a dip in January after improving at year-end, highlighting persisting woes as high inflation and rising interest rates erode Britons' purchasing power.

UK consumer confidence in January dips over December levels

A succession of weak data releases in Europe and the United States as global stock markets slipped for the second straight day on Wednesday and bond yields inched lower on growing fears that policymakers bent on dampening inflation will tip their economies into recession, as reported by Reuters.

The central bankers are doubling down on hawkish rhetoric. More is likely later on Wednesday when the heads of the European Central Bank, U.S. Federal Reserve and Bank of England speak at a central banking forum. 
Data on Tuesday showed U.S. consumer confidence dropped to a 16-month low in June, yet several Fed policymakers pledged further rapid interest-rate hikes, citing the need to tame “unbridled” inflation. Those U.S. figures, following a raft of dismal consumer confidence data across Europe, triggered steep Wall Street falls, sending the S&amp;P 500 and the Nasdaq indexes down 2% and 3% respectively.

That weaker momentum carried into Wednesday, sending an Asian ex-Japan index 1.4% lower, while a pan- European equity index eased 0.3%, snapping a three-day rally. U.S. and German 10-year bond yields slipped 5-6 basis points, the former down more than 30 bps from mid-June highs.

The consumer sentiment deterioration clearly points to a recession, Citi told clients. After 7.5%-7.9% annual inflation prints across German provinces, an 8% June reading is expected for the country later in the day, versus 7.9% in May.

As reported by Reuters, Paul O’Connor, head of Janus Henderson’s multi-asset team in London, predicted “stormy” markets as long as the growth- inflation question marks persisted.

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“The problem is that the level of inflation is so problematic in so many parts of the world and we are a long way from central banks being able to declare the job is done,” O’Connor said.

“We will undoubtedly get growth downgrades over the summer but we will also get a rising perception of recession risk and I don’t think markets are fully priced for it,” he added.

While parts of the Chinese stock market, including property, extended gains on Wednesday, the positive impact of the news largely petered out - the Chinese blue-chip, which hit four-month highs on Tuesday, slumped 1.5% and Hong Kong lost 2%.

Wall Street futures flatlined.

(with inputs from agencies) 
&nbsp;

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A succession of weak data releases in Europe and the United States as global stock markets slipped for the second straight day on Wednesday and bond yields inched lower on growing fears that policymakers bent on dampening inflation will tip their economies into recession, as reported by Reuters.

A succession of weak data releases in Europe and the United States as global stock markets slipped for the second straight day on Wednesday and bond yields inched lower on growing fears that policymakers bent on dampening inflation will tip their economies into recession, as reported by Reuters. The central bankers are doubling down on hawkish rhetoric. More is likely later on Wednesday when the heads of the European Central Bank, U.S. Federal Reserve and Bank of England speak at a central banking forum. Data on Tuesday showed U.S. consumer confidence dropped to a 16-month low in June, yet several Fed policymakers pledged further rapid interest-rate hikes, citing the need to tame “unbridled” inflation. Those U.S. figures, following a raft of dismal consumer confidence data across Europe, triggered steep Wall Street falls, sending the S&P 500 and the Nasdaq indexes down 2% and 3% respectively. That weaker momentum carried into Wednesday, sending an Asian ex-Japan index 1.4% lower, while a pan- European equity index eased 0.3%, snapping a three-day rally. U.S. and German 10-year bond yields slipped 5-6 basis points, the former down more than 30 bps from mid-June highs. The consumer sentiment deterioration clearly points to a recession, Citi told clients. After 7.5%-7.9% annual inflation prints across German provinces, an 8% June reading is expected for the country later in the day, versus 7.9% in May. As reported by Reuters, Paul O’Connor, head of Janus Henderson’s multi-asset team in London, predicted “stormy” markets as long as the growth- inflation question marks persisted. Also Read: European Union proposed to ban use of flavoured heated tobacco products “The problem is that the level of inflation is so problematic in so many parts of the world and we are a long way from central banks being able to declare the job is done,” O’Connor said. “We will undoubtedly get growth downgrades over the summer but we will also get a rising perception of recession risk and I don’t think markets are fully priced for it,” he added. While parts of the Chinese stock market, including property, extended gains on Wednesday, the positive impact of the news largely petered out - the Chinese blue-chip, which hit four-month highs on Tuesday, slumped 1.5% and Hong Kong lost 2%. Wall Street futures flatlined. (with inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Global stock market slips as consumer confidence plummets

US consumer confidence dropped to a nine-month low in November amid worries about the rising cost of living and pandemic fatigue, but that did not change expectations for stronger economic growth this quarter.

United States: Consumer Confidence index down to a nine-month low

Indian industry body Assocham said that there are signs of improved consumer confidence in several key sectors, including hospitality, of the economy.

World Business Watch: Indian consumer confidence showing signs of pick up in Q2 says Assocham

US consumer confidence has raised this month to its highest level since the start of the COVID-19 pandemic, supporting views that economic growth will accelerate in the coming months, driven by more fiscal stimulus and an improving public health situation.

World Business Watch: US consumer confidence hits one-year high

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