U.S. consumer confidence falls to 3-month low in October on labor market concerns

Consumer confidence in the United States fell to a 3-month low during the period of October, following concerns over the country’s labor market and an equally unhealthy household condition.

U.S. consumer confidence index decreased to a three-month low of 98.6 (forecast was 101.5) from a revised 103.5, data released by the New York-based Conference Board showed Tuesday.

The gauge of present conditions gauge fell to 120.6 from 127.9, while measure of consumer expectations for the next six months declined to 83.9 from 87.2. Also, share of those who said jobs were currently plentiful decreased to 24.3 percent from 27.6 percent.

In addition, the labor differential, measuring the share of those saying jobs are plentiful minus the share saying they’re hard to get, was 2.2 percentage points, down from 5.3 points in September and the biggest monthly decline since 2012, data showed.

Share of Americans who see their incomes increasing in the next six months held at 17.5 percent, while 16 percent of respondents said they saw an improvement in business conditions in the next six months, down from 17 percent and the lowest in three months.

However, consumers remained less optimistic about the outlook for the labor market, as 13.1 percent said more jobs will be available in six months, the fewest since May.

"Overall, sentiment is that the economy will continue to expand in the near-term, but at a moderate pace," said Lynn Franco, Director, Economic Indicators, Conference Board.