Consumer Confidence Hits 4 Month Low…

The Conference Board’s Consumer Confidence Index declined to 47.7 in October from a revised figure of 53.4.  This was well below the consensus forecast of 53.1, and the lwoest reading in four months.  The October Present Situation index came in at 20.7 compared to 23.0 in September, while the October Expectations index finished at 65.7 versus 73.7 in September. The driver behind October’s less than stellar performance is continued weakness in the labor market.

According to the Conference Board, “The short-term outlook has also grown more negative, as a greater proportion of consumers anticipate business and labor market conditions will worsen in the months ahead. Consumers also remain quite pessimistic about their future earnings, a sentiment that will likely constrain spending during the holidays.”

In other news, August’s Case Shiller HPI rose 1.2%, realizing its third consecutive month of gains.  On a year over year basis the index is now down 11.3% compared to 13.3% in June.  Home prices improved in all but one–Las Vegas–of the 20 cities included in the index.