Consumer confidence falls to two-year low
The consumer confidence index from the University of Michigan fell more than 4 percent from September to October to its lowest level in two years.
Half of all consumers anticipate an economic downturn in the next five years for the first time since October 2014, the survey found. The increased pessimism may simply reflect a temporary bout of uncertainty caused by the election, said the universityês Surveys of Consumers chief economist Richard Curtin.
Prospects for renewed spending gains will depend on continued growth in jobs and wages as well as low inflation and interest rates, Curtin said. He believes the small rise in interest rates expected in December will have a minimal effect on consumer spending. Real personal consumption spending will likely increase by 2.5 percent through mid-2017, said Curtin.Download Bulletin PDF