The Conference Board reported today that consumer confidence fell for the second consecutive month. The confidence level is now at its lowest point of the pandemic.
Consumers who think business conditions are “bad” increased from 38.9% to 43.6%.
Consumers who think jobs are “plentiful” fell from 22.3% to 21.5%.
Consumers who expect an increase in their income in the next six months declined from14.8% to 12.7%.
The big picture: When consumers are confident, they spend more, but the reverse is also true. This data shows how important it is for Washington to come together on a pandemic relief package to instill confidence. Such a package should contain timely, temporary, and targeted relief, including a liability safe harbor as well as support for slow-to-recover employers, the unemployed, and state and local governments.