U.S. Consumer Confidence Drops Further in November Amid Rise in Covid-19 Cases
By Xavier Fontdegloria
Consumer confidence in the U.S. declined for the second
consecutive month in November amid a continued surge in Covid-19
infections across the country, according to data from The
Conference Board released Tuesday.
The consumer confidence index decreased to 96.1 in November from
an upwardly revised 101.4 in October. Economists polled by The Wall
Street Journal expected consumer sentiment to slip to 98.0.
The present situation index, which reflects consumers assessment
of current business and labor market conditions, fell slightly to
105.9 from 106.2 the previous month. The expectations index, which
gauges short-term outlook for income, business and labor market
conditions, was sharply down to 89.5 in November from 98.2 in
November marks the second consecutive month of declines for the
index, signaling mounting worries among Americans amid the rise in
Covid-19 cases and tightening restrictions across the country.
Consumer confidence remains far from February's pre-pandemic level
American consumers noted a moderation in business conditions,
suggesting growth has slowed in the fourth quarter, said Lynn
Franco, senior director of economic indicators at The Conference
"Heading into 2021, consumers do not foresee the economy, nor
the labor market, gaining strength. In addition, the resurgence of
Covid-19 is further increasing uncertainty and exacerbating
concerns about the outlook," she said.
Consumers' appraisal of current conditions was relatively
unchanged in November. However, Americans have grown less
optimistic about the short-term outlook and the job market.
The proportion expecting more jobs in the months ahead declined
to 25.9% from 32%, while those anticipating fewer jobs increased
moderately to 20.5% from 19.8%.
The Conference Board's consumer confidence figures are in line
with the University of Michigan's preliminary gauge of sentiment
for the month, released on Nov. 13, which signaled consumer
sentiment waning in early November. The final reading for the
indicator will be released on Nov. 25.
Write to Xavier Fontdegloria at email@example.com
(END) Dow Jones Newswires
November 24, 2020 10:28 ET (15:28 GMT)
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