The numbers: A survey of consumer confidence fell to a five-month low of 102.6 in October amid worries about inflation, rising interest rates and fighting between Israel and Hamas.
The closely followed index slipped from a revised 104.3 in September, the Conference Board said Tuesday.
Economists polled by the Wall Street Journal had forecast the index to register 100.
Consumer confidence tends to signal whether the economy is getting better or worse. In good times, the index can top 120 or more.
Key details: A measure that looks at how consumers feel about the economy right now declined to 143.1 from 146.2 in the prior month.
A confidence gauge that looks ahead six months dipped to 75.6 from 76.4.
For the past two months, the future-expectations index has been below the 80 mark that often signals a recession ahead.
Big picture: Americans have become more worried about the economy due to rising interest rates, higher gas prices and a faltering stock market.
The labor market is very healthy, however, and jobs are easy to find. The unemployment rate sits at an extremely low 3.8%.
Secure in their jobs, consumers are spending enough to keep the economy growing and to keep the odds of recession low.
Looking ahead: “Consumers continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular,” said Dana Peterson, chief economist at the Conference Board.
“Consumers also expressed concerns about the political situation and higher interest rates. Worries around war and conflicts also rose, amid the recent turmoil in the Middle East,” he said.
Market reaction: The Dow Jones Industrial Average
DJIA,
and the S&P 500
SPX,
fell in Tuesday trades.
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