US consumer confidence fell for a third straight month in October amid concerns about the short-term outlook for business conditions and job prospects, but remained at levels consistent with continued growth in consumer spending. Other data on Tuesday suggested lower interest rates were lending some support to the struggling housing market. Contracts to purchase previously owned homes jumped in September to their highest level in nearly two years and house prices increased solidly in August. A stabilizing housing market could underpin consumer spending, which is the economy's growth engine.
The Conference Board said its consumer confidence index slipped to a reading of 125.9 this month from an upwardly revised 126.3 in September. The index was previously reported at 125.1 in September. It was 12 points lower than its reading in October last year.
Economists polled by Reuters had forecast it rising to 128.0 in October. The survey's present situation measure, based on consumers' assessment of current business and labor market conditions, increased to 172.3 this month from 170.6 in September. But the expectations index drawn from consumers' short-term outlook for income, business and labor market conditions declined to 94.9 from 96.8 last month. Separately, the S&P CoreLogic Case-Shiller national house price index increased 3.2% from a year ago in August after rising 3.1% in July. That was the first year-over-year acceleration in the rate of home price growth since March 2018.
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