US Consumer Confidence Rises in October for First Time in Four Months, Still on Downward Trend
US consumer confidence ticked up in October after a four-month decline, aided by easing gas prices, but remains on a long-term downward trend amid gloomy economic outlooks.
According to data released by The Conference Board, US consumer confidence rose in October, marking the first increase after four consecutive months of decline. This shift was partly helped by easing retail gas prices, although the report noted that despite the monthly gain, "confidence remained on the long-term downward trend."
Energy costs have been a significant driver of recent consumer sentiment. Since the start of the Iran war, US gas prices are 40% higher than one year ago, spiking shipping costs and the price of many household items. This inflationary pressure affects not only household budgets but also the political landscape. A former economic adviser to US President Donald Trump told The Associated Press, "People hate paying more money for gas," suggesting Republicans may pay a high price for this in the upcoming midterm elections.
Meanwhile, markets expect the Federal Reserve to hit pause on interest rates this week, though investors predict this pause will not last long. Despite the short-term improvement in data, the gloomy economic outlook continues to cloud Republicans' midterm prospects.