Consumer Confidence Fell Sharply in November

• The consumer confidence index dropped to 88.7 in November.
• Only 1% of consumers consider business conditions good.
• Consumers are refraining from purchasing big-ticket items.

Main Information

The consumer confidence index in the USA fell to 88.7 in November, which is the lowest level since April. This occurred against the backdrop of recorded domestic demand regarding job availability and financial situations, which, likely, is related to recent tightening of government work.

In response to the Conference Board report, the index fell by 6.8 points from the previously reported 95.5 in October. Economists had predicted a decrease to only 93.4.

Key Facts

Only 1% of consumers consider business conditions good in the USA, while in October this indicator stood at 20.7%. Additionally, 9% consider conditions poor, which is down from 14.5% in the previous month.

Consumers are also refraining from plans to purchase big-ticket items, such as automobiles and household appliances. Only 9% of respondents expect improved business conditions in the next six months, while 6% believe that job availability is sufficient.

Moreover, 3% of consumers expect income increases, while 13.8% believe their incomes will decrease.

Consumer Perspectives

Overall, consumers have become more cautious in their spending. Uncertainty in the future continues to affect their willingness to purchase big-ticket items, which indicates a growing concern regarding the economic situation.

Tags: USA/Economy