US Consumer Confidence Drops for Third Consecutive Month Amid Recession Fears and Inflation Concerns

US Consumers' Pessimism Highlighted by Continued Rise in Borrowing Costs and Political Uncertainty; Short-Term Economic Outlook Worsens for Fourth Quarter

The Conference Board reports that the consumer confidence index fell to 102.6 in October from 104.3 in September, marking a third consecutive month of decline.
According to the report, a pessimistic short-term outlook for income, business, and job market conditions is signaled by readings below 80; the index plummeted to 75.6 in October from 76.4 in September, suggesting a possible recession within a year.
Despite the decreasing confidence, US consumers continue to spend heavily on both goods and services through the third quarter of the year. However, economists warn that such strong spending is unlikely to continue in coming months.
Factors contributing to declining consumer confidence include rising prices, especially for groceries and gasoline, a potentially higher interest rate, geopolitical conflicts, and political instability.
Inflation, current at 3.7%, remains above the Federal Reserve's target of 2%, despite a significant decline from its peak of over 9% in June 2022.