The New York-based Conference Board, a 501 non-profit business membership and research organization that keeps track of over 1,000 public and private corporation across 60 countries, had reported that the US Consumer Confidence had fallen to their lowest levels in six years this month as the United States’ economic recovery appears to have become a far cry amid a paradox of pandemic.
In point of fact, while the United States’ effort to contain the outbreak had repeatedly been met with sheer criticisms, The Conference Board had said in a statement on Tuesday that its Consumer Confidence survey index had dropped off to a reading of 84.8 this month compared to a July decline of 91.7, remarking the Index’s lowest level since the May of 2014.
Aside from that, The Conference Board had also added at its statement that the US Consumer Confidence, a critical indicator to US Consumer Spending accountable for nearly two-thirds of entire US economic activities, had been hovering below 36 per cent from a pre-pandemic reading recorded in February.
Sharp drop in US Consumer Confidence suggests sluggish spending
Aside from that, because the US Consumer Spending accounts for nearly 70% of entire economic activities in the world’s No.
1 economy as beforementioned, a drop in Consumer Confidence for two straight months in a row has been reflecting a sharp slow down for US economic recovery, suggested analysts. Meanwhile, adding that the US Consumer Spending would likely to bottom in a near-future unless the US Government could contain a steady spike in pandemic cases, a senior director of indicators at the Conference Board, Lynn Franco said, “Consumer spending has rebounded in recent months but increasing concerns among consumers about the economic outlook and their financial well-being will likely cause spending to cool in the months ahead. ”