DORAL, FL – U.S. consumer confidence index fell to 109.5 in November from 111.6 in October according to a report released by the Conference Board on Tuesday.
The report says the index decreased to a nine-month low in the current month while future expectations also dropped due to concerns about the rising cost of living and the COVID-19 pandemic.
“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.”
The focus on the delta variant was originated because at the time of the survey, aimed to evaluate consumer’s view on the economy, Omicron variant hadn’t been discovered yet. This variant was found first in South Africa last week and since then it has reached 14 countries around the globe with no detected cases in this nation.
But despite the new scenario, bolstered by solid job growth, robust wage gains and record-high stock prices, U.S. consumer confidence is higher than that seen earlier in the pandemic although people are still worried about a resurgence in Covid-19 cases and the fastest inflation in decades.
They are also concerned about their financial prospects and job outlook in the future, specifically over the next six months. Still, some of them announced their plans to purchase homes, cars and major appliances during the next semester.
“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 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.
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