Investing.com - Confidence among U.S consumers fell in December, marking its lowest level in five months, amid growing concerns of an economic slowdown.
The Conference Board's index of consumer confidence decreased to 128.1 this month, compared to a reading of 133.7 forecast by economists.
“Expectations regarding job prospects and business conditions weakened, but still suggest that the economy will continue expanding at a solid pace in the short-term. While consumers are ending 2018 on a strong note, back-to-back declines in Expectations are reflective of an increasing concern that the pace of economic growth will begin moderating in the first half of 2019,” Lynn Franco, director of economic indicators at The Conference Board, said.
The headline index looks at U.S. consumer’s views of current economic conditions and their expectations for the next six months. The index is closely watched by economists because consumer spending accounts for about 70% of U.S. economic activity.
The Present Situation Index – based on consumers’ assessment of current business and labor market conditions – declined slightly, from 172.7 to 171.6. The Expectations Index – based on consumers’ short-term outlook for income, business and labor market conditions – decreased from 112.3 last month to 99.1 this month.
The cutoff date for the preliminary results was December 13.