Economy
October 1, 2019
Conference Board: Consumer Confidence Dips in September
Written by Peter Wright
Consumer confidence as reported by The Conference Board declined more than expected in September. Month on month, the composite value of the index declined from 134.2 to 125.1. Calculated as a three-month moving average (3MMA) to smooth the monthly volatility, the measure of consumer confidence actually increased slightly from 131.4 to 131.7. This is why we consider a moving average.
The composite index is made up of two sub-indexes: the consumer’s view of the present situation and his or her expectations for the future. In September, expectations were almost on trend, but the consumer’s view of the present situation is still below the nine-year trend line (Figure 1).
