U.S. Consumer Confidence Fell to a Nine-Month Low in November




  • In Business
  • 2021-11-30 15:24:26Z
  • By Bloomberg

(Bloomberg) -- U.S. consumer confidence decreased to a nine-month low in November as accelerating inflation and a pickup in Covid-19 cases weighed on Americans' views on the economy.

Most Read from Bloomberg

  • China Cash Flowed Through Congo Bank to Former President's Cronies

  • 'Pension Poachers' Are Targeting America's Elderly Veterans

  • Reliving the New York Subway Map Debate

The Conference Board's index declined to 109.5 from a downwardly revised 111.6 reading in October, according to the group's report Tuesday. Economists in a Bloomberg survey called for a drop to 110.9.

"Expectations about short-term growth prospects ticked up, but job and income prospects ticked down," Lynn Franco, senior director of economic indicators at the Conference Board, said in a statement. "Concerns about rising prices -- and, to a lesser degree, the delta variant -- were the primary drivers of the slight decline in confidence."

Bolstered by solid job growth, robust wage gains and record-high stock prices, consumer sentiment is well-above levels seen earlier in the pandemic. However, a resurgence in Covid-19 cases and the fastest inflation in decades has hampered a sustained recovery in Americans' confidence.

"Both confidence and spending will likely face headwinds from rising prices and a potential resurgence of Covid-19 in the coming months," Franco said.

The group's measure of current conditions fell to the lowest since April and future expectations also dropped.

While consumer confidence fell in the month, it's still well above the average level over the last 10 years. That's unlike the University of Michigan's consumer sentiment measure, which fell to a decade low in November amid inflationary fears.

Part of the difference can be attributed to the Conference Board's greater emphasis on views of the labor market. The share of consumers who said jobs were "plentiful" rose to a new record of 58%.

Consumers were less optimistic about their financial prospects and job outlook over the next six months. Fewer Americans also said they were planning to purchase homes, cars and major appliances over the same time period.

The figures come ahead of Friday's November employment report, which is currently forecast to show the U.S. added more than half a million jobs in the month.

(Adds graphic.)

Most Read from Bloomberg Businessweek

  • Medical Debt Is Crushing Black Americans, and Hospitals Aren't Helping

  • Wildfires Are Getting Worse, and One Chemical Company Is Reaping the Benefits

©2021 Bloomberg L.P.

COMMENTS

More Related News

Wall Street
Wall Street's Great Inflation Trade Peaks as Funds Dump TIPS

(Bloomberg) -- The great inflation trade on Wall Street has reached a tentative peak, judging by a slew of cross-asset signals including the world of passive...

Larry Fink Infuriates Republicans and Climate Activists Alike
Larry Fink Infuriates Republicans and Climate Activists Alike

(Bloomberg) -- Larry Fink, the chief executive officer of BlackRock Inc., is drawing a lot of ire these days for someone who's attracting record inflows from...

OPEC Sees Oil Market
OPEC Sees Oil Market 'Well-Supported' by Robust Demand

(Bloomberg) -- OPEC expects global oil markets to remain "well-supported" this year by robust demand, maintaining the confident outlook that has allowed the ...

Jefferies Joins Growing List of China Equity Bulls on Valuations
Jefferies Joins Growing List of China Equity Bulls on Valuations

(Bloomberg) -- Jefferies Financial Group Inc. strategists turned bullish on Chinese stocks, saying they're due for a rebound after getting hammered by a year...

China
China's Spreading Property Debt Crisis Pressures Xi to Ease

(Bloomberg) -- Financial contagion is roaring back in China's property industry, putting renewed pressure on Xi Jinping's government to do more to insulate...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business