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.
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.
