A key indicator of consumer confidence slipped in December as the coronavirus pandemic raged on in the United States amid the initial rollout of vaccines to combat the virus. The Conference Board reported that its Consumer Confidence Index fell to 88.6 from a revised 92.9 in November, dropping to its lowest reading since August.
“Consumers’ assessment of current conditions deteriorated sharply in December, as the resurgence of Covid-19 remains a drag on confidence,” said Lynn Franco, senior director of economic indicators at The Conference Board, in a press release. “As a result, consumers’ vacation intentions, which had notably improved in October, have retreated. On the flip side, as consumers continue to hunker down at home, intentions to purchase appliances have risen. Overall, it appears that growth has weakened further in Q4, and consumers do not foresee the economy gaining any significant momentum in early 2021.”
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A separate measure of consumer confidence was higher than its November reading but lower than it was in mid-December. The University of Michigan reported that its Consumer Sentiment Index fell to 80.7 at the end of December from 81.7 earlier in the month, but the year-closing reading was up from 76.9 at the end of November.
