American consumers are now less confident as concerns about the possibility of an economic recession increase. The Conference Board, a business research group, said on October 31 that its consumer confidence index fell to 102.6 from 104.3 in September.
This index measures American consumers' assessment of the current state of the economy and their outlook for the next six months.
An index measuring American consumers' views on income, business and the labor market in the short term fell again, to 75.6 in October from 76.4 in September. A reading below 80 for future expectations has historically signaled a possible economic recession within a year.
Consumers' view of current conditions also declined this month, to 143.1 from 146.2 in September.
Consumer spending accounts for about 70% of US economic activity, so economists pay close attention to consumer mood to assess how it may affect the economy more broadly.
