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Getty Images Consumers are still fairly confident in the U.S. economy overall, but they are a bit more worried about the labor market heading into the holiday season.
The numbers: Consumer confidence fell in November for the fourth month in a row as Americans expressed more worries about the U.S. labor market, but they remained generally upbeat about the economy heading into the holiday season.
The consumer confidence index slipped to 125.5 this month from a revised 126.1 in October, the Conference Board said Tuesday. That’s the lowest level since the early spring.
Economists polled by MarketWatch had forecast a reading of 128.2.
The index of consumer confidence touched an 18-year peak just over a year ago, but it’s fallen in the wake of persistent trade tensions with China that have sapped the U.S. and global economy.
What happened: American were a bit less optimistic about the state of the economy right now, but they expect it to improve a bit in the months ahead.
The so-called present situation index dipped to 166.9 from 173. Yet a gauge that looks at expectations six months from now rose to 97.9 from 94.5
“Overall, confidence levels are still high and should support solid spending during this holiday season,” said Lynn Franco, director of economic indicators at the privately run Conference Board.
The consumer confidence survey measures how Americans view their own financial well-being, job prospects and overall business conditions.
Read: U.S. tariffs on China have oddly little effect on import prices. What’s going on?
Big picture: A healthy economy requires confident consumers and Americans are still fairly confident in the economy. Hiring has tapered off and jobs aren’t quite as easy to find, but unemployment is near a 50-year low, layoffs are scarce and wages are rising steadily.
Businesses are less confident largely because of a trade war with China that’s dented exports, raised costs and cut into profits. The U.S. and China are striving to strike a “phase-one” agreement, but companies are unlikely to boost spending and investment until trade tensions ease.
What they are saying? “While the consumer confidence reading wasn’t what we were looking for, the index remains elevated and we therefore still have confidence in consumers’ ability to prop up the economy,” economist Katherine Judge of CIBC World Markets told clients in a note.
Market reaction: The Dow Jones Industrial Average DJIA, +0.10% and S&P 500 SPX, +0.10% rose slightly in Tuesday trades after a negative opening.
Read: It’s great the stock market is setting records, but it’s not because economy is great
The 10-year Treasury yield TMUBMUSD10Y, -1.37% was little changed 1.74%.
