US: Consumer confidence to increase slightly in October - Nomura

Analysts at Nomura expect the US Conference Board’s consumer confidence index to increase slightly to 121 in October.

Key Quotes

“In the preliminary reading of the October University of Michigan survey, confidence increased strongly, reflecting solid consumer fundamentals despite recent disruptions due to the active hurricane season. Retail gasoline prices have come down after a brief increase due to Hurricanes Harvey and Irma.”

“Moreover, although nonfarm payroll employment fell temporarily due to the hurricanes in September, incoming data suggest that the pace of labor market improvement remains solid going into Q4. Finally, Conference Board consumer sentiment retreated in September primarily in Texas and Florida due to inclement weather, so some rebound would be reasonable in October.”