In October U.S. consumer confidence saw a slight dip compared to months previous. This caught a lot of people off guard because the Dow Jones expected approximately a 2% increase in consumer confidence but saw a half percent decrease to 125.9. This is the lowest that consumer confidence has been since June when it was 124.3. It was said that the consumers are worried about the future job prospects and future business conditions but weren't necessarily worried about the current state of business conditions. This decrease hasn't seemed to cause any distress because consumer confidence is still at a very high level. What do you think that this shows for the future levels of consumer confidence?
https://www.cnbc.com/2019/10/29/us-consumer-confidence-for-october-comes-in-at-125point9-vs-128-expected.html
I believe that we will continue to see a decrease in consumer confidence in these following months. This is largely due to our trade uncertainty with China. Also, we have an inverted yield curve which can be an indicator of recession, leading to lower consumer confidence.
ReplyDeleteThis hit to consumer confidence isn't at all surprising to me due to the abnormal amount of uncertainty right now in the economy. I am concerned that if consumer confidence continues to dip what the implications will be for consumption, seemingly the only thing growing the US economy currently.
ReplyDeleteThis is pretty interesting to me because of the decreasing tensions between the U.S and China. Over the past few weeks the stock market has been doing really well because the U.S and China seem to be getting closer and closer to a resolution . Investment is increasing and the economy as a whole is doing well.
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