Conference Board: Consumer confidence down unexpectedly in November

Washington - The Conference Board said Tuesday that consumer confidence in November fell to a reading of 88.7, down from a revised 94.1 in October.The drop, which surprised analysts, put the index at its lowest level since June.



Consumer confidence retreated in November, primarily due to reduced optimism in the short-term outlook,” said Lynn Franco, director of economic indicators, Conference Board.



In a note to clients, Shepherdson at Pantheon Macro said the report was disappointing, but that he expectx a rebound in December. "We are inclined to see it as a lagged response to the drop in stock prices in October, which has since more than reversed, while gas prices have fallen further," Shepherdson said. "Most of the hit was in the expectations component, which is very sensitive to gas and stock prices; it fell 6.8 points, reversing a 7.4-point October jump. We expect a rebound in December and further gains early next year."