Confidence in the American economy has declined

Confidence in the American economy has declined

Consumer confidence was shaken even more by the pandemic.

USA: the consumer confidence index dove deep this month, reaching a low unseen since 2014: 86.9 points from March’s 118.8. It shows just how pessimistic the Americans are about the current situation in their country.

But, according to the survey, they expect an economic recovery in the future. The number of consumers who expect the business conditions to improve in the next six months increased to 40%.

“Consumers’ short-term expectations for the economy and labor market improved, likely prompted by the possibility that stay-at-home restrictions will loosen soon, along with a re-opening of the economy,” according to Lynn Franco, director of economic indicators at the board.

The drop doesn’t come as a shock after more than 26 million people filed for unemployment benefits since the pandemic started. Also, the number of people who think their short-term incomes will increase dropped by 16.7%. Moreover, the percentage of those who believe there are more than enough jobs on the market increased to 43.3% from 20%.

The market reacted swiftly, with USA30 losing 32 points, USA500 decreasing more than 15 points, and TECH100 shedding more than 122 points.


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Sources: marketwatch.com, msn.com

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