Consumer confidence slips in October

Consumer confidence fell less than half a point to 100.9 in October from a downwardly revised level of 101.3 the month prior. Rising case counts and lost momentum in the labor market could be headwinds in months ahead.

Learning to Live With COVID?

While COVID was the catalyst for the collapse in confidence earlier this year, it is not clear that it remains the key driver in shaping consumer confidence now. Despite a new wave of infections that lifted case counts to a record high in October, consumer confidence was largely unfazed falling less than half a point to 100.9. Although, the survey window closed on October 16, and the spike in cases occurred in the 2nd half of the month.

Jobs May Be a Bigger Factor

The share of those describing jobs as "hard to get" edged slightly lower to 19.9 from 20.3, though the jobless rate remains high. After a sharp rebound initially, the recent loss of momentum in the labor market prevents a more robust confidence surge.

Signs of life were evident in those who saw jobs as "plentiful" rising to 26.5 from 23.6 the month prior. The series is now at a post-COVID high after the largest monthly jump in four months.

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