United States: Consumer confidence falls to the lowest level since May 2014 in August
The Conference Board’s consumer confidence index decreased to 84.8 in August from 95.9 in July. Therefore, the index plunged further below the 100-threshold that separates pessimism from optimism. August’s result fell significantly short of market expectations of 93.0 reading and likely reflected increased concerns over the evolution of the pandemic domestically and as some states refrained from easing lockdown measures due to elevated numbers of new Covid-19 cases.
American households’ assessment of the current state of the economy deteriorated sharply, while their assessment of short-term outlook for income and business conditions also worsened in August.
Lynn Franco, senior director of economic indicators at the Conference Board, noted:
“Consumer spending has rebounded in recent months but increasing concerns amongst consumers about the economic outlook and their financial well-being will likely cause spending to cool in the months ahead.”