The Conference Board's rating of American consumer confidence fell for the third straight month in October according to the latest release out Wednesday morning.
According to the group, the Consumer Confidence Index dipped to 102.6 from September's 104.3 rating, which was down from August's index. The Present Situation Index for October which is based on consumers' evaluation of the current labor market and business conditions also declined to 143.1 from 146.2. In addition, the Expectations Index which is based on American consumers' expectations for the economy in the next six months decreased to 75.6 from 76.4.
Notably, according to the Conference Board, an Expectations Index below 80 "historically signals a recession within the next year." With October's index continuing a downward trajectory, "fears of an impending recession remain elevated, consistent with the short and shallow economic contraction" the Conference Board anticipates "for the first half of 2024."
Dana Peterson, The Conference Board's chief economist, said that “October’s retreat reflected pullbacks in both the Present Situation and Expectations Index" while "responses showed that consumers continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular."
"Consumers also expressed concerns about the political situation and higher interest rates," Peterson continued of October's report. "Worries around war/conflicts also rose, amid the recent turmoil in the Middle East. The decline in consumer confidence was evident across householders aged 35 and up, and not limited to any one income group," she noted.
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House Budget Committee Chairman Jodey Arrington (R-TX) reacted to October's index showing consumer confidence is "in a tailspin."
"Families are fed up with poor economic outlooks spurred by Democrats' endless spending spree - each week yielding more financial unpredictability than the last," Arrington explained. "Consumers are not seeing the so-called ‘benefits’ of Bidenomics, especially when a family of four is now paying $15,133 per year - or $1,261 per month - more to purchase the same goods and services compared to the day President Biden took office," Arrington reminded.
"More of the same - big government spending and stifling over-regulation - will not get the people out from under the crushing boulder of Bidenomics," Arrington warned. "Restoring our fiscal health should put the taxpayer in the driver’s seat and leave President Biden (and his wasteful spending) in the dust."
