"Sentiment regarding current conditions was mixed, with consumers saying the job market had strengthened, while economic conditions had slowed"
- Lynn Franco, director of Economic Indicators at the CB
While some analysts are claiming the world's largest economy is resilient to domestic problems and risks that came from sequester and later government shutdown this year, the latest report from the Conference Board showed that mood among American consumers plunged to a seven-month low in November. A gauge of consumer sentiment eased to 70.4 this month from a revised 72.4 a month earlier, and short of analysts' expectations for a 72.6 reading. An unexpected drop explains why some domestic retailers are seeing a need to match competitors' discounts during this holiday-shopping season. As Americans are getting more concerned about the labour market outlook, more working places and higher wages would help lay the groundwork for a pickup in household spending that accounts for almost 70% of overall economic activity.
Consumer expectations for economic activity in the next six months inched lower to 69.3 this month, hitting the lowest since March, while sentiment regarding current situation was mixed. The dim economic view and gloomy prospects are suggesting the economy will post sluggish growth in the fourth quarter, on the back of weak consumer spending even taking into account gift-buying season.
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