U.S. consumer confidence ebbing; housing market firming

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U.S. consumer confidence fell for a fourth straight month in November amid worri...

WASHINGTON - U.S. consumer confidence fell for a fourth straight month in November amid worries about current business conditions and employment prospects, but remained at levels sufficient to support a steady pace of consumer spending.

The Trump administration’s 16-month trade war with China has been largely blamed for the ebb in consumer confidence. The trade fight has also hammered business confidence, leading to a downturn in capital expenditure. The survey’s present situation measure, based on consumers’ assessment of current business and labor market conditions, fell to 166.9 this month from 173.5 in October. But the expectations index drawn from consumers’ short-term outlook for income, business and labor market conditions rose to a reading of 97.9 from 94.5 last month.

The dollar was steady against a basket of currencies, while U.S. Treasury prices rose. Stocks on Wall Street were trading higher, with the three main indexes hitting all-time highs on rising hopes of a U.S.-China trade truce.In a separate report on Tuesday, the Commerce Department said new home sales dropped 0.7% to a seasonally adjusted annual rate of 733,000 units last month.

A third report on Tuesday showed the S&P CoreLogic Case-Shiller 20-metro-area house price index increased 2.1% from a year ago in September after rising 2.0 % in August. Firming house price inflation was also corroborated by another report from the Federal Housing Finance Agency showing home prices advancing 5.1% in September from a year ago.

 

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