Consumer confidence fell in December, declining to 88.6 of a possible 100 points from 92.9 in November, according to a Consumer Confidence Survey from The Conference Board.
The figure is intended to reflect the attitudes and purchasing plans of consumers across various economic and demographic categories.
On a more granular level, two of the data points that figure into the overall index number moved in opposite directions.
Assessing the current state of business conditions and the labor market, consumers reported what The Conference Board described as a sharp decline in sentiment in December compared to November. The figure fell to 90.3 from 105.9.
The percentage of consumers who said business conditions are “good” fell to 18.8 percent from 16 percent, month to month. The percent who said business conditions are “bad” increased to 39.5 percent from 34.9 percent.
One reason for the overall decline was that “the resurgence of COVID-19 remains a drag on confidence,” Lynn Franco, senior director of economic indicators at The Conference Board, said in a prepared statement. “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.”
Eyeing the future, consumers reported a rosier outlook. The Expectations Index grew to 87.5 in December, up from 84.3 in November.
The Conference Board reported that 29 percent of consumers expect the economy will improve over the next six months, up from 26.5 percent in November. The percent expecting the situation to deteriorate further over the next six months fell to 21.9 percent from 22.5 percent.
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