Consumer confidence just collapsed more than expected.
The latest reading on consumer confidence from the Conference Board came in at 98.6.
That’s a huge drop from the prior month’s reading of 104.1 — which was a post-recession high — and below economists’ expectations of 101.5.
“Consumer confidence retreated in October, after back-to-back monthly gains,” said Lynn Franco, Director of Economic Indicators at The Conference Board.
“Consumers’ assessment of current business and employment conditions softened, while optimism regarding the short-term outlook retreated somewhat. However, consumers’ expectations regarding their income prospects in the coming months were relatively unchanged. Overall, sentiment is that the economy will continue to expand in the near-term, but at a moderate pace.”
The report notes that consumers’ opinion on the labour market was “less optimistic” in October than in the prior month with the percentage of those expecting more jobs in the months ahead dropping to 13.1% from 15.7% and the percentage of those expecting incomes to increase staying flat at 17.5%.
On the positive side, the percentage of those expecting fewer jobs also dropped, from 18.1% to 17.0%, and the percentage of those expecting incomes to decline fell to 9.8% from 10.4%.