US consumer confidence slips in November

The Conference Board Consumer Confidence Index® declined in November, following an increase in October. The Index now stands at 109.5 (1985=100), down from 111.6 in October. The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—fell to 142.5 from 145.5 last month. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—fell to 87.6 from 89.0.

Expectations about short-term growth prospects ticked up, but job and income prospects ticked down. Concerns about rising prices—and, to a lesser degree, COVID-19 —were the primary drivers of the slight decline in confidence. However, the cutoff date for this month’s survey occurred prior to news of the Omicron variant. This month’s survey also showed that the proportion of consumers planning to purchase homes, automobiles, and major appliances over the next six months decreased. While the Conference Board expects this to be a good holiday season for retailers and confidence levels suggest the economic expansion will continue into early 2022 there may be mounting downside risks to this outlook associated with rising prices and a potential resurgence of COVID-19.

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