“Overall, confidence levels are still high and
should support solid spending during this
holiday season,” Conference Board economist
Lynn Franco said.
Earlier this month, the Commerce Department
reported that Americans stepped up their
shopping in October, spending more online
and buying more cars, another good sign as the
holiday shopping season kicks off this week with
“Black Friday” events.
Consumer confidence has been shaken
somewhat by a global slowdown that’s
coincided with a drawn-out US-China trade
war that has hurt American manufacturers and
increased economic uncertainty.
The trade battle and weak global growth has led
many businesses to cut back on their investment
spending and economists have dialed back growth
estimates for to under 2% for the third quarter.
On Wednesday, the Commerce Department issues
the second estimate of how the U.S. economy
performed in the July-September quarter.
Consumer confidence is closely watched by
economists because their spending accounts for
70% of economic activity in the US.