Does falling consumer confidence mean the Trump opposition has finally discouraged Americans?
Not only is the media reporting falling consumer confidence but also a slowing housing market.
The enthusiasm that was demonstrated in the market for President Donald Trump’s election win could not cancel out eight years (or more!) of government damage to the economy. Plus, Americans saw Trump opposed by the media and Democrats (same group) along with establishment Republicans.
Reuters reports, “U.S. consumer confidence falls; new home sales hit eight-month low.”
The Conference Board said its consumer confidence index declined to a reading of 119.8 this month from 120.4 in August, which was the highest reading in five months. It said confidence in Texas and Florida “decreased considerably.”
The survey showed consumers’ views of the labor market were less upbeat. The share of consumers saying jobs are “plentiful” fell to 32.6 percent from 34.4 percent in August.
However, the proportion of those stating jobs are “hard to get” slipped to 18.1 percent from 18.4 percent. The number of consumers expecting an improvement in their incomes rose marginally to 20.5 percent this month from 19.9 percent in August. The share expecting a drop in income was unchanged at 8.3 percent.
Despite being near full employment, the labor market has struggled to generate strong wage growth, frustrating both consumers and policymakers. But rising home prices should continue to underpin consumer spending, even though the housing market is slowing.
A second report on Tuesday showed the S&P CoreLogic Case-Shiller composite index of house prices in 20 metropolitan areas rose 5.8 percent in July on a year-over-year basis after increasing 5.6 percent in June.
The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by EagleRising.com