Consumer Confidence Drops to Six-Month Low; Business Inventories Rise

Consumer confidence declined in October to the lowest level in six months, the New York-based Conference Board said Oct. 29.

The group’s monthly index fell to a reading of 71.2 from 80.2 a month earlier, the biggest decline since August 2011, the group said.

The reading was below economists’ median forecast of a 75 reading, Bloomberg News reported. Estimates from economists ranged from 70 to 82.

An improvement in confidence may increase consumer spending, which accounts for 70% of the economy.

“We had lost a little momentum going into the shutdown,” Stephen Stanley, chief economist at Pierpont Securities told Bloomberg. “It could be a lackluster holiday retail season, and I think we’re going to continue plodding along here.”

Business inventories rose 0.3% in August, and sales increased 0.3%, the Commerce Department reported in a separate report.

The rise matched economists forecast, according to Bloomberg News.

When sales are growing, trucking usually faces additional demand to deliver goods and restock shelves.