Citing a recent increase in gas prices, the Conference Board released a report on Tuesday showing a modest decrease in U.S. consumer confidence in the month of November.
The Conference Board said its consumer confidence index dipped to 100.2 in November from a revised 102.2 in October. Economists had expected the index to slip to 100.0 from the 102.5 originally reported for the previous month.
The modest decrease by the headline index came as the present situation index edged down to 137.4 in November from 138.7 in October.
While consumers’ assessment of current business conditions was mixed, their appraisal of the labor market was somewhat more favorable.
“The Present Situation Index moderated further and continues to suggest the economy has lost momentum as the year winds down,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.
The report showed the expectations index also fell to 75.4 in November from 77.9 in October, as consumers remain pessimistic about the short-term business conditions outlook.
The Conference Board said consumers were also more downbeat about the short-term labor market outlook as well as their short-term income prospects.
“Consumers’ expectations regarding the short-term outlook remained gloomy,” Franco said. “Indeed, the Expectations Index is below a reading of 80, which suggests the likelihood of a recession remains elevated.”
Franco noted inflation expectations reached their highest level since July, with both gas and food prices as the main culprits.