WASHINGTON (Reuters) – U.S. consumer confidence ebbed in October after two straight monthly increases amid rising concerns about inflation and a possible recession next year, a survey showed on Tuesday.
The Conference Board said its consumer confidence index fell to 102.5 this month from 107.8 in September. Economists polled by Reuters had forecast the index at 106.5.
Consumers’ 12-month inflation expectations rose to 7.0% from 6.8% last month. The survey’s present situation index, based on consumers’ assessment of current business and labor market conditions, declined sharply to 138.9 from 150.2 in September.
Its expectations index, based on consumers’ short-term outlook for income, business and labor market conditions, fell to 78.1 from 79.5 last month. The expectations index remains below a reading of 80, a level associated with a recession and suggests that the risks of a downturn could be rising.
“Looking ahead, inflationary pressures will continue to pose strong headwinds to consumer confidence and spending,” said Lynn Franco, senior director of Economic Indicators at The Conference Board in Washington.
(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)
