Consumer Confidence Slips as Spread of Delta Variant Weighs on Sentiment

Source: TCB

Consumer confidence fell to a six-month low in August, as the spread of the COVID-19 delta variant dragged sentiment on economic conditions. IYK is up 0.091%, while XLP is up 0.19%.

• The Conference Board Consumer Confidence Index dropped to 113.8 in August versus 125.1 in July. This is the lowest since February.
• Growth was recorded in the number of respondents that said business conditions are “bad,” accounting for 24% of respondents versus 20.0% previously.
• A decline was seen in respondents that believe business conditions are “good,” at only 19.9% from 24.6% previously.
• The proportion of respondents that believe jobs are “hard to get” increased, while those that believe jobs are “plentiful” declined.
• Optimism over the short-term business conditions, labor market, and financial prospects also declined.
• The Conference Board Senior Director Lynn Franco attributed the results to concerns on the delta variant and the increase in gas and food prices.
• Figures are not yet conclusive to conclude if the drop in confidence will result in lower spending in the coming months.