Consumer confidence in November fell to its lowest level since August amid a spike in COVID-19 infections nationwide, according to new figures from the Conference Board.
The monthly gauge dropped to 96.1 this month, down from October’s revised reading of 101.4.
One of the main contributors to the overall decline came from declining confidence in the economy over the next six months. That index dropped from 36 to 27.4.
“Heading into 2021, consumers do not foresee the economy, nor the labor market, gaining strength,” Lynn Franco, senior director of economic indicators at The Conference Board, said in a statement Tuesday.
“In addition, the resurgence of COVID-19 is further increasing uncertainty and exacerbating concerns about the outlook,” she added.
Declining consumer confidence could lead to decreased or slower spending heading into the holiday shopping season, when many businesses bring in as much as 50 percent of their annual revenue.
The traditional shopping season has been upended by the pandemic, with case counts expected to climb over the next several weeks, leading to more hospitalizations and deaths from COVID-19.
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