Consumer Confidence Falls to Lowest Level in Six Years
August 25, 2020
U.S. consumer confidence fell for the second consecutive month, dropping to the lowest level since 2014. The Conference Board’s Consumer Confidence Index fell to 84.8 in August, down from July’s 91.7. The index is down 36% from its high point this year.
Because consumers drive more than two-thirds of total GDP in the country, economists pay a great deal of attention to their sentiment. Analysts are concerned that confidence is lower now than even during the height of the economic lockdown.
Consumer spending rebounded significantly in recent months after cratering in the spring. Now, with the labor market still struggling, enhanced unemployment benefits expiring, and Congress deadlocked on another round of stimulus spending, consumers’ view of their current financial situation dropped sharply.