Consumer confidence plunges as COVID-19 spreads
The United States consumer confidence plunged moderately in the month of October due to a new wave of the coronavirus pandemic observed across the nation. The Conference Board currently reported that its consumer confidence index dropped to a reading of 100.9 from 101. 8 in September, but still remains below pre-epidemic levels. Moderate drop in October readings follow a major increment in last month.
The consumer spending estimates for 70 percent of economic activity in the United States, as a drop in consumer confidence receives a massive attention from economists, mostly as the country heads into the vital holiday shopping season. The consumer confidence decreased to 85.7 in April because huge swaths of the US moved into lockdown to recognize infections. It had continuously performed well above hundred in the months before that, along with the index hampering 132.6 in February before the severity of the coronavirus epidemic became logical.
According to the recent data, the average deaths per day across the United States are climb 10 percent over the last two weeks. Reportedly, newly finalized COVID-19 cases per day are increasing in 47 states and deaths are rise to 34. The portion of the index that calculates current conditions, which is dependent on consumer evaluation of present business as well as labor industry situations that have also gained from 98.9 to almost 104.6.
However, consumers were less confident in October related to the future because the expectations index decreased to 98.4 in this month from 102.9 previous month. Different factors are responsible for the recent gain in COVID-19 cases across the country along with current elevated employment losses as well as uncertainty over the upcoming presidential election that may have operated a part in willingness of consumers regarding the future.