Written by US consumer confidence index in September was 103, lowest in 4 months… “Reflects anxiety about rising oil prices and interest rate hikes”
U.S. September *Consumer confidence index fell to 103, recording the lowest level in four months. This is a level that is significantly lower than both the previous month’s figure (108.7) and the market forecast (105.5), and is interpreted as reflecting consumer anxiety about ▲rising oil prices ▲sustainability of interest rate increases ▲the U.S. government shutdown.
By detailed index, the current conditions index, which reflects consumer evaluation of the current economic and employment situation, rose slightly to 147.1, but the future expectations index, which shows short-term (6-month) outlook, fell to 73.7, recording the lowest since May. If the future expectations index falls below the critical value of 80, it indicates the possibility of an economic recession within one year.
While there is a prevailing view that the U.S. economic recession will be avoided, consumers’ concerns about household finances and employment prospects remain deep. In particular, with regard to spending plans for the next six months, demand for purchasing expensive durable goods such as cars, houses, and home appliances also decreased.
Excerpt from Bloomberg News