US: Consumer confidence remains high despite October correction - Wells Fargo

Today’s report on Consumer Confidence showed a decline from 103.5 to 98.6. According to analysts from Wells Fargo, despite the correction, confidence still remains high. 

Key Quotes: 

“Consumer confidence pulled back in October as households felt less upbeat about both their present situation and expectations for the future. That said, at 98.6, confidence remains above its year-to-date average, with consumers’ views of their present situation noticeably improved over the past year. The gap between the present and expectations index remains near a cycle high and is consistent with a decent pace of spending.”

“Assessments of the labor market deteriorated a bit in October. The differential between the share of consumers reporting jobs as plentiful minus hard to get fell to a three-month low, but remains at levels consistent with further labor market gains.”

“Expectations for stronger income growth should also provide support to spending. The net share of households expecting income to increase verses decrease rose to a 10-month high.”