BusinessUS consumer confidence falls to its lowest level in three months

    US consumer confidence falls to its lowest level in three months

    US consumer confidence falls to its lowest level in three months

    The damage caused by inflation in the pocket of Americans when they pay for or purchase basic products and services has generated distrust in the way the federal government intends to strengthen the economy.

    The most recent report released by the Conference Board reveals that the general index of consumer confidence fell from 102.2 to 100.2, this compared to last month.

    Regarding the indicator that measures the vision of the current economic conditions, it also decreased from 138.7 to 137.4.

    The same happened with the index of short-term expectations of the economy, which went from 77.9 to 75.4.

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    In this regard, Lynn Franco, senior director of economic indicators for the Conference Board, pointed out that the data suggests the possibility that next year there could be a recession in the economy.

    “Consumer confidence fell again in November, most likely driven by the recent increase in gasoline prices. So the Present Situation Index eased further and continues to suggest that the economy has lost momentum as the year winds down.
    As to Consumer expectations regarding the near-term outlook remained gloomy. In fact, the expectations index is below 80, suggesting that the probability of a recession remains high.“, he indicated.

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    Consumer spending represents almost 70% of economic production and while it is true that a few days ago there were significant economic spillovers through sales made during Black Friday, as well as on Cyber ​​Monday, this cannot be considered a reliable indicator of the health of the economy, since it is more due to the habit of buying end-of-year gifts and not to the recurring expenses of Americans during a common month.

    In this regard, Vivek Pandya, principal analyst at Adobe Digital Insights, pointed out that the high volumes of purchases registered a few days ago were the result of the position taken by retail stores to offer high discounts so as not to be left with an inventory of products the following year. .

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    “With oversupply and a weakening consumer spending environment, retailers made the right decision this season to drive demand through deep discounts,” he said.

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    Source: La Opinion

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