US: Consumer confidence faces challenges – Wells Fargo

An indicator from the Conference Board showed that consumer confidence declined in October. According to analysts at Wells Fargo is could be because of rising coronavirus cases and lost momentum in the labor market.

Key Quotes: 

“Consumer confidence fell less than half a point to 100.9 in October from a downwardly revised level of 101.3 the month prior. Rising case counts and lost momentum in the labor market could be headwinds in months ahead."

“While COVID was the catalyst for the collapse in confidence earlier this year, it is not clear that it remains the key driver in shaping consumer confidence now.”

“The share of those describing jobs as “hard to get” edged slightly lower to 19.9 from 20.3, though the jobless rate remains high. After a sharp rebound initially, the recent loss of momentum in the labor market prevents a more robust confidence surge.”