US Consumer Confidence Falls to Lowest Level Since 2014

Summary

The Conference Board's US consumer confidence gauge fell to 84.5, the lowest since May 2014, missing estimates and down from a revised 94.2. Mike McKee said the decline was driven by worsening views of the labor market and income expectations. He noted a divergence with Michigan sentiment, which rose and is more tied to the stock market, while Conference Board confidence is more tied to jobs. The report raises questions about whether consumers will pull back on spending and stop leading growth.

• Conference Board consumer confidence fell to 84.5, lowest since May 2014.
• The reading missed all economist estimates and followed an upwardly revised 94.2.
• Present situation and expectations components both declined.
• Fewer consumers said jobs were plentiful; more said jobs were hard to get.
• Income expectations weakened, with more consumers expecting lower incomes.
• Mike McKee noted Michigan sentiment rose while Conference Board confidence fell.
• Conference Board data is more closely tied to jobs, while Michigan data is more tied to stocks.
• The report raises the risk of a pullback in consumer buying and weaker consumer-led growth.