US consumer confidence fell slightly in September as Americans grew more wary
about the outlook in coming months, according to a closely watched report.
The Conference Board said its consumer confidence index fell to 79.7 in
September, down from a revised 81.8 in August.
Though a decline was expected for September, the figure was weaker than the
80.0 consensus estimate.
"This is in line... with buyers awaiting a battle among lawmakers over raising
the Treasury debt ceiling that could threaten a government shutdown," said
Nate Kelley of Moody's Analytics.
The Present Situation Index rose to 73.2 in September from 70.9 in August.
The Expectations Index, indicating consumers' views on the outlook six months
into the future, dived to 84.1 from 89.0 last month.
"Consumer confidence decreased in September as concerns about the short-term
outlook for both jobs and earnings resurfaced, while expectations for future
business conditions were little changed," said Lynn Franco, the Conference
Board's director of economic indicators.
"While overall economic conditions appear to have moderately improved, consumers are uncertain that the momentum can be sustained in the months ahead."
Consumers' outlook on jobs and incomes in the coming months darkened.
The number of consumers expecting more jobs fell to 16.9pc from 17.5pc in August, while those anticipating fewer jobs rose to 19.7pc from 17.2pc.
Income expectations were sharply lower. Those expecting their incomes to increase tumbled to 15.4pc from 17.5pc.
The concerns about lower incomes could crimp consumer spending, the engine of US economic growth.
The decline in expectations "also gibes with our call for a relatively weak holiday shopping season this year," said Moody's Kelley.
But while consumer confidence declined, a closely-watched survey of house prices across 20 major US cities showed that property values increased 12.4pc in the year to July. The rise, the highest in seven years, was widely expected by economists, but some foresee a cooling over the rest of the year as mortgage rates climb.
Lawrence Yun, chief economist at the Realtors group, said the surge in sales in August was probably the “last hurrah” for the next year to 18 months as higher prices and the jump in mortgage rates hurts affordability for some buyers.
Article Source: http://www.telegraph.co.uk/finance/economics/10331727/US-consumer-confidence-slips-as-house-prices-rise-at-the-fastest-rate-in-seven-years.html
"While overall economic conditions appear to have moderately improved, consumers are uncertain that the momentum can be sustained in the months ahead."
Consumers' outlook on jobs and incomes in the coming months darkened.
The number of consumers expecting more jobs fell to 16.9pc from 17.5pc in August, while those anticipating fewer jobs rose to 19.7pc from 17.2pc.
Income expectations were sharply lower. Those expecting their incomes to increase tumbled to 15.4pc from 17.5pc.
The concerns about lower incomes could crimp consumer spending, the engine of US economic growth.
The decline in expectations "also gibes with our call for a relatively weak holiday shopping season this year," said Moody's Kelley.
But while consumer confidence declined, a closely-watched survey of house prices across 20 major US cities showed that property values increased 12.4pc in the year to July. The rise, the highest in seven years, was widely expected by economists, but some foresee a cooling over the rest of the year as mortgage rates climb.
Lawrence Yun, chief economist at the Realtors group, said the surge in sales in August was probably the “last hurrah” for the next year to 18 months as higher prices and the jump in mortgage rates hurts affordability for some buyers.
Article Source: http://www.telegraph.co.uk/finance/economics/10331727/US-consumer-confidence-slips-as-house-prices-rise-at-the-fastest-rate-in-seven-years.html
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