The Conference Board’s Consumer Confidence Index Falls Further in November

The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released today (11-29-22) its Consumer Confidence Index® (CCI) for November 2022. The CCI declined for the second consecutive month, after experiencing two consecutive months of growth. The Index now stands at 100.2 (1985=100), down from its October reading of 102.2.

The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—declined in September to a reading of 137.4, down from its October’s reading of 138.7.

The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—decreased in November to a reading of 75.4, down from its October reading of 77.9.

Adding additional background and her analysis of the CCI for November, Lynn Franco, Senior Director of Economic Indicators at The Conference Board, said:

“Consumer confidence declined again in November, most likely prompted by the recent rise in gas prices. The Present Situation Index moderated further and continues to suggest the economy has lost momentum as the year winds down. Consumers’ expectations regarding the short-term outlook remained gloomy. Indeed, the Expectations Index is below a reading of 80, which suggests the likelihood of a recession remains elevated.

Inflation expectations increased to their highest level since July, with both gas and food prices as the main culprits. Intentions to purchase homes, automobiles, and big-ticket appliances all cooled. The combination of inflation and interest rate hikes will continue to pose challenges to confidence and economic growth into early 2023.”