Consumer confidence fell more than expected in October, according to the latest data from the Conference Board.
- M-O-M: Consumer confidence fell 5.3 points to 10.2.5, and economists projected a much smaller drop to 106.5.
- Y-O-Y: Consumer confidence was down 7.3 points from the same time last year.
Worried About Now. The Present Situation Index saw a big 11.3-point drop to 138.9in October. The Expectations Index is already depressed but still saw a slight 1.4-point drop to 78.1.
Analysis. Lynn Franco, Senior Director of Economic Indicators at The Conference Board, said inflation continues to be a big concern for consumers. “Notably, concerns about inflation—which had been receding since July—picked up again, with both gas and food prices serving as main drivers…Looking ahead, inflationary pressures will continue to pose strong headwinds to consumer confidence and spending, which could result in a challenging holiday season for retailers.”
- Big spending was mixed as well with Franco noting, “Vacation intentions cooled; however, intentions to purchase homes, automobiles, and big-ticket appliances all rose.”