The U.S Conference Board Consumer Confidence Index slips further in November

Following a modest drop in October, the Conference Board Consumer Confidence Index has extended the decline further in November. Compared to 126.1 in October, the figure for November has been noted at 125.5. The report highlights that the Present Situation Index has dropped from the previous month’s 173.5 to 166.9 this month. The index is derived from the consumer’s assessment of the prevailing conditions in the labor market and current business. The Expectations index, on the other hand, has caught steam from last month’s 94.5 to 97.9 in November. The index is derived from the short-term outlook of the consumers regarding the labor market, business, and income at large.

U.S Economic Growth To Remain At 2% In The First Quarter Of 2020

Senior Director of Economic Indicators, Lynn Franco of the Conference Board highlighted that the report marks fourth consecutive month for consumer confidence to have declined. She further pointed out that the Present Situation Index’s drop hints at weaker economic growth to finish the fiscal year 2019. On the other hand, however, the slight increase in the Expectations index may manifest as the U.S economic growth holding its ground at 2% in the first quarter of 2020.

All in all, the director opinionated that that confidence levels are still sufficiently supportive to ensure solid spending in the upcoming holiday season.

As per the report specifics, 40.2% of the consumers voted the business conditions to be good in November as compared to 39.7% in October. On the other hand, however, consumers voting the business conditions to be bad have also increased from the previous month’s 11% to 13.8% this month. The report also added that the consumers in favor of the U.S economy providing ample job prospects decreased sharply from 47.7% in October to 44.8% in November. Those who voted that the job prospects are getting scarce were noted at 12.7%, having increased by 1.1% from the figure for October.

The Short-Term Consumer Outlook Improved In November

In terms of the short-term outlook, consumers were announced to have shown greater optimism in November. 17.2% of the consumers were hopeful that the next six months will see an improvement in the business conditions, as compared to 18.7% in October. Although, a slight increase from 11.5% to 12.1% was also seen in the consumers who had a negative outlook for the business conditions that’ll present in the next six months.

The outlook for the labor market was reported to be somewhat mixed. While votes for greater job prospects in the upcoming months reduced to 15.7% from last month’s 16.9%, consumers claiming the prospects are likely to decline also dropped from 18% to 13.2% in November.