Despite favorable economic news such as record high job creation, record low unemployment claims, and increased consumer spending, American consumer confidence fell last month to a nine month low, the Associated Press reports. The drop is largely due to consumer concerns relating to rising prices and lingering fears of the spread of the coronavirus.
On Tuesday, the Conference Board announced consumer confidence fell to 109.5 in November from 111.6 the previous month. This compares to a measurement of 95.2 in February, just after President Joe Biden took office. The survey used by the Conference Board incorporated data from a survey taken prior to November 19th, before the prospect of the Omicron variant of the coronavirus became widely known.
Other indices measured by the Conference Board also ticked down. The present situation index, which measures consumers’ assessment of current business and labor conditions, fell to 142.5, down from 145.5 in October. The Board’s expectations index, based consumers’ outlook for income, business and labor market conditions, fell to 87.6 in November from 89.0 in October.