U.S. Economy: Consumer Confidence Increases More Than Forecast
By Courtney Schlisserman and Bob Willis
Oct. 26 (Bloomberg) -- Confidence among U.S. consumers rose in October from a seven-month low as households turned less pessimistic on the outlook for the economic recovery.
The Conference Board’s sentiment index climbed to 50.2, exceeding the median forecast in a Bloomberg News survey, from a revised 48.6 in September, according to figures from the New York-based research group today. Another report showed home- price gains receded in August after a tax credit lapsed.
Americans’ views on job availability and wage prospects soured, according to the confidence figures, highlighting the risk that unemployment near 10 percent will limit spending, which accounts for 70 percent of the world’s biggest economy. Wal-Mart Stores Inc. is among retailers seeing sales drop off at the end of each month as households run low on cash.
“Confidence is still very depressed,” said Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania. “For many it’s still going to feel like a recession until employment comes back.”
Stocks fluctuated between gains and losses as the higher- than-estimated confidence measure and a stock buyback plan by International Business Machines Corp. offset results at Texas Instruments Inc. and U.S. Steel Corp. that disappointed investors. The Standard & Poor’s 500 Index fell 0.1 percent to 1,184.69 at 11:49 a.m. in New York.
Economists surveyed forecast the sentiment index would increase to 49.9 from a previously reported 48.5 for September, according to the median of 75 projections. Estimates ranged from 45 to 53.
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