US Consumer Confidence slips in October but average trends higher – Wells Fargo
27 October 2015, 20:13
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According to economists from Wells Fargo Bank, today’s decline in October
Consumer Confidence was due to a downshift in job growth combined with ongoing
fiscal policy debates in Congress but noted that confidence continues to trend
higher on average.
Key Quotes:
“Consumer confidence fell slightly in October as consumers’ views of the current economic environment slipped a bit, likely related to the downshift in the pace of job growth and ongoing fiscal policy debates in Washington. That said, confidence continues to trend higher on average with the three-month moving average breaking above 100 for the first time since March.”
“The more forward-looking employment gauge showed slightly fewer respondents indicated that there would be more jobs available over the next six months with expectations of income increases also falling slightly in October.”
“Looking ahead to the fourth quarter of this year, we continue to expect real consumer spending to take the lead in supporting overall GDP growth. Consumer spending should grow around a 3.0 percent pace to end the year leading to a 2.8 percent pace of real GDP growth.”
“With continued solid consumer fundamentals and some of the unease around federal fiscal policy likely to be resolved before key deadlines, we expect consumer confidence on trend to further solidify through the end of the year.”
Key Quotes:
“Consumer confidence fell slightly in October as consumers’ views of the current economic environment slipped a bit, likely related to the downshift in the pace of job growth and ongoing fiscal policy debates in Washington. That said, confidence continues to trend higher on average with the three-month moving average breaking above 100 for the first time since March.”
“The more forward-looking employment gauge showed slightly fewer respondents indicated that there would be more jobs available over the next six months with expectations of income increases also falling slightly in October.”
“Looking ahead to the fourth quarter of this year, we continue to expect real consumer spending to take the lead in supporting overall GDP growth. Consumer spending should grow around a 3.0 percent pace to end the year leading to a 2.8 percent pace of real GDP growth.”
“With continued solid consumer fundamentals and some of the unease around federal fiscal policy likely to be resolved before key deadlines, we expect consumer confidence on trend to further solidify through the end of the year.”
