About us
One-Year Inflation Expectations at 4.8%
(New York=Yonhap Infomax) Jin Woo Choi—US consumer confidence retreated to its lowest level in seven months.
According to the Conference Board (CB), a US economic research organization, the Consumer Confidence Index for November stood at 88.7 (1985=100), down 6.8 points from the previous month’s 95.5.
This marks the lowest reading since April (85.7) and falls short of the market consensus of 93.5.
The Consumer Confidence Index combines the Expectations Index, which reflects consumers’ short-term (six-month) outlook on income, business, and the labor market, and the Present Situation Index, which assesses current economic and labor market conditions.
The Expectations Index dropped by 8.6 points to 63.2, remaining below the recession threshold of 80 for the tenth consecutive month.
The proportion of consumers expecting economic improvement over the next six months fell by 4.0 percentage points to 14.9%, while those anticipating deterioration increased from 22.2% to 27.7%.
Consumers expecting more jobs dropped by 3.2 percentage points to 12.6%, while those anticipating fewer jobs rose from 28.8% to 29.5%.
The share of consumers expecting higher incomes declined from 18.2% to 13.0%, while those expecting lower incomes increased from 11.8% to 13.8%.
The Present Situation Index fell by 4.3 points to 126.9.
The proportion of respondents describing current business conditions as “good” decreased to 20.1% from 21.0%, while those viewing conditions as “bad” rose by 2.4 percentage points to 17.9%.
The share of respondents saying jobs are “plentiful” fell by 2.6 percentage points to 26.0%, while those finding jobs “hard to get” edged down by 0.4 percentage points to 17.9%.
Dana Peterson, Chief Economist at the CB, said, “After several months of sideways movement, consumer confidence dropped sharply in November to its lowest level since April. All five components of the index were weak or continued to underperform.”
She added that consumers most frequently cited concerns about prices and inflation, tariffs and trade, politics, and the potential for a federal government shutdown. One-year inflation expectations were recorded at 4.8%.
jwchoi@yna.co.kr
(End)
Copyright © Yonhap Infomax Unauthorized reproduction and redistribution prohibited.