The US consumer confidence index fell sharply again in April by 31.9 points to 86.9, the lowest level since June 2014. The fall was caused by the current situation and a decrease to 76.4 from 166.7 points, which is the lowest value since December 2013. The April decrease of 90 points is the largest in history. The expectations component received 7 points to 93.8 from 86.8 points in the previous month.
However, consumers were less optimistic about their financial prospects, and this could have an impact on spending as the recovery recovers. Uncertainty about the economic effects of COVID-19 is likely to cause expectations to fluctuate in the coming months.
According to a University of Michigan report: “The decline in both indicators indicates a continuing recession, but the gap reflects the expected cyclical nature of the coronavirus. In the coming weeks, when several countries reopen their economies, consumers will receive more information on how the opening of states could lead to a resurgence of coronavirus infection.
Defeating COVID-19 and getting back to normal is the only way to sustainably increase the economy and consumer sentiment. Whether this is a quick result or not is very questionable. On the other hand, it is certain that the extremely weak economic news over the next few months.
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