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Measures of consumer perceptions of the economy have been stimulated by strong economic growth, low unemployment and growing wealth.
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WASHINGTON – US households have become a little less confident about the economy in late October, but their overall outlook has remained elevated despite increasing financial and political uncertainty.
The University of Michigan said Friday that its consumer confidence index was 98.6 in October, down from an initial reading of 99.0 released earlier this month. Economists surveyed by the Wall Street Journal expected the final reading to remain at 99.0 for October.
"This resilience was mainly due to the belief that the economy would generate strong job growth over the coming year, even if overall wage growth remained weak," Richard said. Curtin, chief economist of the Michigan Inquiry.
Consumer sentiment on current economic conditions and forecasts for the future eased in October, resulting in a slight decline in the overall index. Despite the slight decline observed during the month, the index remained higher in 2018 than any other year since the turn of the century.
Consumer action against the economy climbed after the election of President Trump in 2016 and was supported by strong economic growth, low unemployment and rising wealth. But the recent uncertain financial conditions and the darkening of the political climate could blur the outlook.
"Falling stock prices, rising inflation and interest rates, and negative mid-term election campaigns have not hurt consumer confidence," said Curtin. "Needless to say, consumers are not immune to these negative factors. The data only indicates that the tipping point to growing pessimism has not been reached. "
Write to Sharon Nunn at [email protected]
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