The numbers: US consumer confidence has faltered for the second month in a row in December, reaching its lowest level since the worst coronavirus blockage in May.
The consumer confidence index fell to 88.6 this month from a 92.9 revised in November, the board said on Tuesday. MarketWatch economists estimate that confidence will rise to 96.7 in December. The index had reached 101.4 in October.
Confidence remains well below pre-pandemic levels. The index stood at 132.6 before the February viral outbreak.
What happened: An index that tracks how consumers feel the economy has now fallen to 90.3 in December from 105.9 in November.
Another indicator that assesses the way Americans look at the next six months – the so-called index of future expectations – has risen to 87.5 from 84.3.
Overview: The increase in the number of virus cases across the country and the renewed restrictions on business are negative for sentiment. These are partly offset by rising house prices and news of the vaccine launch. A separate sentiment measure from the University of Michigan improved in early December.
What the Conference Council said: “Overall, growth appears to have fallen further in the fourth quarter, and consumers do not expect the economy to gain a significant boost in early 2021,” said Lynn Franco, senior director of economic indicators at the Conference Board.
Market reaction: Dow Jones Industrial Average DJIA,
decreased to 131 points after the publication of the data.