According to the latest survey by the Conference Board, consumer confidence has once again slipped as Americans take a more dismal outlook on the economy amid the ongoing surge in coronavirus infections. Data from other sources, such as Bloomberg's Consumer Confidence Index and the University of Michigan's consumer sentiment survey, shows a similar slide towards a more dismal sentiment.
The Conference Board found a drop in consumer confidence from 92.9 to 88.6 from November to December. Consumers were slightly more confident about the economy's future, with 29% of consumers responding that they believed the economy would improve over the next six months, which was up 3.5% from November. For the short-term, though, consumers aren't expressing much optimism.
"Consumers' assessment of current conditions deteriorated sharply in December, as the resurgence of COVID-19 remains a drag on confidence. Overall, it appears that growth has weakened further in Q4, and consumers do not foresee the economy gaining any significant momentum in early 2021," Said Lynn Franco of the Conference Board.
Other metrics are reflecting a similar decline in consumer sentiment. Bloomberg's index experienced a 1.4 point drop to 47; Bloomberg's sentiment index for the national economy hit a four-month low, while its personal finance index dropped for the fifth consecutive time.
The University of Michigan's index representing consumer sentiment was up from November, reaching 80.7 from 76.9, but is still down considerably as opposed to its pre-pandemic high.
"While the rollout of the vaccine has been greeted as the beginning of the end, the end of the pandemic is still on the distant horizon in terms of a return to normalcy for consumer behavior, even among the most favored households," remarked Richard Curtain, chief economist of the Survey of Consumers.
The surge in coronavirus infection numbers across the country, as well as the latest round of shutdowns in several states, are giving consumers little reason to express optimism. Further worsening matters for American consumers is the weak stimulus measures being offered by Congress. As reflected in several sentiment indices, consumers are expressing overwhelming negativity about their personal finances, given that CARES Act support has dried up and what support has been offered to replace it is being met with overwhelmingly negative reception by Americans.
Unless the federal government steps in to provide more comprehensive relief, it is likely that consumer confidence will remain low for the foreseeable future, given the long road to normalcy ahead.