The Conference Board index lost 1.9 points in November compared to October, to drop to 109.5 points. Analysts expected a more modest decline, to 111 points.
U.S. consumer confidence fell in November, due in part to concerns about inflation as well as lingering fears about COVID-19, according to the Conference Board index released on Tuesday.
The index lost 1.9 points in November compared to October, to fall to 109.5 points, falling more than expected by analysts who expected a more modest decline, to 111 points. The two components, the one measuring confidence in the current situation and the one measuring confidence in the economic situation for the next six months, fell compared to October.
“Concerns about rising prices – and, to a lesser extent, the Delta variant – were the main drivers of the slight drop in confidence,” said Lynn Franco, senior director of economic indicators at the Conference Board, quoted in a report. communicated. The investigation was carried out before the Omicron variant, which was first reported less than a week ago, and which is already threatening to slow global growth, came to light.
Lynn Franco said that “the proportion of consumers who plan to buy homes, cars and major appliances in the next six months has declined.” Thus, “The Conference Board expects a good holiday season for retailers. However, confidence and spending are likely to face challenges from rising prices and a potential resurgence of COVID-19 in the coming months ”.
Bottlenecks along the supply chain drive up prices. Inflation in the United States is now at its highest for 31 years. In October, prices rose 6.2% compared to October 2020, after 5.4% in September, according to the CPI index.
The confidence index rebounded in October, after falling in September to its lowest level since February.