U.S. Consumer Confidence Dips To 6-Month Low
US consumer confidence fell to a six-month low in August as concerns about soaring COVID-19 infections and higher inflation dampened the outlook for the economy, Lucia Mukitani reported for Reuters.
Photo Insert: Although Americans were less inclined to buy motor vehicles or household appliances, figures show consumers planned to go on vacation.
The survey from the Conference Board on Tuesday also showed consumers were less upbeat about the labor market.
They were less inclined to buy a home and big-ticket items like motor vehicles and major household appliances over the next six months, supporting the view that consumer spending will cool in the third quarter after two straight quarters of double-digit growth.
Still, more consumers planned to go on vacation, indicating a rotation in spending from goods to services was underway as economic activity continues to normalize following the upheaval caused by the coronavirus pandemic.
Increased spending on services, which account for the bulk of economic activity, should keep a floor under consumer spending.
"While the resurgence of COVID-19 and inflation concerns have dampened confidence, it is too soon to conclude this decline will result in consumers significantly curtailing their spending in the months ahead," said Lynn Franco, senior director of economic indicators at the Conference Board in Washington.