US Consumer Confidence hits 6-month low; house prices spike to record

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US Consumer Confidence hits 6-month low; house prices spike to record

The Conference Board, Inc., a 501 non-profit business research group having had more than 1,000 public and private member organizations, headquartered in New York, said on Tuesday that its index for US Consumer Confidence tumbled to a six-month low in August, as growing frets of a rapid upsurge in delta cases coupled with a soaring inflation had dampened outlook for the economy, while US house prices had accelerated by the steepest pace on record in June.

On top of that, survey data from the New York-based business research group, the Conference Board, Inc., had unfurled that the US consumers had shown a deep discontent over purchase of new homes or big-ticket items like of motor vehicles, bolstering beliefs that US Consumer Spending, the centrepiece of US economy accountable for roughly 66 per cent of entire US economic activity, would highly likely to remain tepid during third quarter of the year following two successive quarters of robust growth.

Meanwhile, citing a growing glumness among US consumers, a chief economist at Naroff Economics in Holland, Pennsylvania, Joel Naroff said followed by the announcement, “The report does raise the warning flag that if the pandemic worsens, and given the continued unwillingness of many to get vaccinated that is a real possibility, we could see people stashing away funds just in case.

We could see growth moderate faster than expected”.

US Consumer Confidence falls to six-month low, house prices hit record

According to Conference Board, the NY-based business research group’s index for US Consumer Confidence had dipped to 113.8 in August, remarking the softest reading since February this year, following a final figure of 125.1 registered in July, wildly falling short of an analysts’ estimate of 124.0.

A separate report released earlier in the day had unveiled that the S&P CoreLogic Case-Shiller national home prices index had soared by an all-time-high 18.6 per cent in June compared to the same time a year earlier.