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Deltacovid-19 Waves relaxed, boosting consumer confidence in the U.S.

Consumer confidence in the United States increased in October following a three-month decline as the wave of Covid-19 cases with delta variants began to ease.

The Consumer Confidence Index rose from the September revision of 109.8 to October to 113.8, according to data released by The Conference Board on Tuesday. This metric exceeds the 108.0 estimate polled by The Wall Street Journal by economists.

Lynn Franco, senior director of economic indicators at The Conference Board, said the increase in self-confidence could be due to Americans eased concerns about Covid-19.

Short-term inflation concerns have risen to their highest levels in 13 years, but consumers said they plan to invest in high-value commodities in the final quarter of this year, Franco added. “The percentage of consumers planning to buy homes, cars and white goods all increased in October, indicating that consumer spending continues to support economic growth,” she said. Told.

Almost half of the respondents said they plan to take vacation within the next six months, the highest level since the March 2020 pandemic.

Consumer confidence suggests Americans’ willingness to invest in products and services that are a major driver of the US economy. Confidence rose to near pre-pandemic levels in the spring, but then declined amid the spread of delta variants that have squeezed Americans in the past few months.

The status quo index, which reflects consumers’ assessment of current business and labor market conditions, rose from 144.3 in September to 147.4 in October. Expectations, which measure the short-term outlook for income, business and labor market conditions, rose from 86.7 last month to 91.3.

“Unsurprisingly, expectations for the labor market are rising and consumers want to spend again,” said Drew Matus, chief market strategist at MetLife Investment Management.

Economists say a reduction in the number of Covid-19 cases should increase consumer confidence in the coming months, but continued shortages of goods, delays in delivery, and prices for the holiday season. The rise can hurt your emotions.

Another consumer sentiment survey conducted by the University of Michigan showed that American sentiment declined in early October. Differences between the two indicators are common, as the University of Michigan survey focuses on consumer attitudes toward purchasing, while the Conference Board survey focuses on labor market conditions. is.

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Deltacovid-19 Waves relaxed, boosting consumer confidence in the U.S.

Source link Deltacovid-19 Waves relaxed, boosting consumer confidence in the U.S.

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