US consumer confidence fell in October after two months of increases amid concerns about inflation and a possible recession next year, a survey showed on Tuesday.
The Conference Board said its consumer confidence index fell to 102.5 this month from 107.8 in September. Economists polled by Reuters had predicted a reading of 106.5.
Consumer expectations for 12-month inflation rose to 7.0% from 6.8% last month. The survey’s current situation index, based on consumers’ assessment of current business and labor market conditions, dropped sharply to 138.9 from 150.2 in September.
The expectations index, based on consumers’ short-term outlook for income, business and labor market conditions, dropped to 78.1 from 79.5 last month. The expectations index remains below a reading of 80, a level associated with a recession and which suggests that the risks of a downturn may be increasing.
“Looking ahead, inflationary pressures will continue to pose strong obstacles to consumer confidence and spending,” said Lynn Franco, senior director of economic indicators at the Conference Board in Washington.
Source: CNN Brasil
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