The numbers: Consumer confidence waned in October, reflecting somewhat less optimism about the jobs market and the U.S. economy in the next six months.
The index of consumer confidence dipped to 100.3 this month from a pandemic high of 101.3 in September, the Conference Board said Tuesday.
Economists polled by MarketWatch had forecast a smaller decline in the index to 101.5.
Confidence is still far below pre-pandemic levels. The index stood at 132.6 before the viral outbreak.
See:MarketWatch Coronavirus Recovery Tracker
What happened: An index that gauges how consumers feel about the economy right now rose to 104.6 in October from 98.9 in the prior month
Yet another gauge that assesses how Americans view the next six months—the so-called future expectations index—declined to 98.4 from 102.9 in September.
Fewer consumers than in September thought the economy would be better in six months and more believe it will be worse.
Big picture: Consumer confidence has waxed and waned during the pandemic based on the number of coronavirus cases. Infections in the U.S. have risen to new highs in October just like in much of Europe, a disturbing trend that could lead to more restrictions or people avoiding public spaces where crowds tend to gather.
If the outbreak gets even worse, the U.S. economy could suffer, especially in the absence of more federal aid.
What they are saying? “There is little to suggest that consumers foresee the economy gaining momentum in the final months of 2020, especially with COVID-19 cases on the rise and unemployment still high,” said Lynn Franco, senior director of economic indicators at the board.
Market reaction: The Dow Jones Industrial Average
DJIA,
fell slightly while the S&P 500 index
SPX,
rose in Tuesday trades .
