This archive report was first published on 31 August 2021.
On August 31, 2021, a survey by The Conference Board revealed a significant decline in US consumer confidence, with the index falling to 113.8, its lowest point since February.
The drop of over 10 points marks the second consecutive monthly decline, following a revision of the July index to 125.1.
According to Lynn Franco, senior director of economic indicators at The Conference Board, concerns over the Delta variant and rising gas and food prices contributed to a less favorable view of current economic conditions and short-term growth prospects.
The resurgence of COVID-19 cases and hospitalizations has led businesses to reimpose mask-wearing requirements, while the end of government stimulus benefits has affected free-spending consumers.
Supply bottlenecks continue to plague the recovering economy, driving prices upward.
Despite this, Franco noted that plans for major spending, such as on homes and autos, have cooled somewhat, but more Americans are planning vacations in the next six months.
However, the expectations index, which reflects consumers' short-term outlook for income, business, and labor market conditions, dropped to 91.4 from 103.8.
Consumer views on the current and future prospects for the labor market have deteriorated slightly, while sentiment about business conditions has become more downbeat.
Economist Robert Frick of Navy Federal Credit Union attributed the decline in confidence to the rising COVID-19 Delta wave, but noted that Americans are still eager to spend as the economy reopens.
