US: Downside surprise in Consumer Confidence – TDS

TD Securities analysts note that the US consumer confidence posted a small surprise to the downside by actually declining to 125.9 in October following an upward-revised 126.3 level in September (mkt: 128.0).

Key Quotes

“The decline was explained by a drop in consumer expectations, while the present situation component actually improved. Moreover, the labor differential improved modestly to 35.1 from 33.5 before, suggesting firm labor market conditions.”

“On net, despite the October decline, consumer confidence remains at still-solid levels that should continue supporting spending in the near-term.”