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- U.S. consumer confidence worsens more than expected in December
U.S. consumer confidence worsens more than expected in December
The Conference
Board announced on Tuesday its U.S. consumer confidence fell 3.7 points to 88.6
in December from 92.9 in November.
Economists had
expected consumer confidence to come in at 97.0.
November’s
consumer confidence reading was revised down from originally-estimated 96.1.
The survey
showed that the expectations index rose from 84.3 last month to 87.5 this
month. Meanwhile, the present situation index plunged from 105.9 in November to
90.3.
“Consumers’
assessment of current conditions deteriorated sharply in December, as the
resurgence of COVID-19 remains a drag on confidence,” noted Lynn Franco, Senior
Director of Economic Indicators at The Conference Board. “As a result,
consumers’ vacation intentions, which had notably improved in October, have
retreated. On the flip side, as consumers continue to hunker down at home,
intentions to purchase appliances have risen. Overall, it appears that growth
has weakened further in Q4, and consumers do not foresee the economy gaining
any significant momentum in early 2021.”
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