Confidence in the US fell for a second month according to the University of Michigan/Reuters survey. The index declined to 66.0 in November from 70.6 in October. Components of the index including conditions and outlook also posted lower with the outlook at a four month low. Consequently, the one-year inflation expectation eased slightly to 2.8% from 2.9%. Markets appear to be shrugging off the release as equities remain higher following a September trade deficit report that showed imports surging 5.8% while exports picked up considerably. Elsewhere, the greenback is recovering off its morning lows while commodities show crude at its lowest level in nearly five weeks. Ultimately, investors appear to be shrugging off the evident weakness in confidence, on the assumption that recovery is moving ahead as job losses slow. This could, however, be a mere folly as lower confidence suggests the sales environment will remain difficult.
Consumer Confidence Seven-Year Chart
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