28/12/2018 – US Consumer Confidence Slumps


Yesterday’s data revealed consumer confidence in the US slumped in December to the lowest since July as a gauge of labour market expectations fell by the most in 41 years, the latest sign Americans are growing less optimistic as stock markets gyrate and the expansion moderates.

The confidence index decreased to 128.1 from 136.4 as consumer expectations fell to a two-year low while the share of people expecting more jobs in the next six months decreased to 16.6 percent from 22.7 percent, the biggest drop since 1977.

It’s evident optimism is slipping after months of rising uncertainty about the trade war and President Donald Trump’s attacks on the Federal Reserve, which have impacted financial markets. This has been accompanied by a weakening economic outlook for next year amid fresh signs that the US housing market is cooling and the manufacturing sector is starting to falter.

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