September 29, 2021

Contagion Of Delta Variant In US Market Dampens Consumer Sentiment!

 U.S. consumer confidence recorded a decline in September for the third consecutive month. This leads to an indication that the contagion impact of the delta variant is becoming increasingly worrisome with the addition of higher commodity prices.

The Index reading fell to a reading of 109.3 from a revised reading of 115.2 in August based on a report released just now. Economists on the other hand expect a much higher reading of 115.0.

The figure carries an indication that the contagion of delta variants affects consumers ’perspectives on the economy. Although new Covid-19 transmission cases recorded a decline but it still showed an increasing trend for other countries.

At the same time, Americans pay more for household goods, this indirectly further burdens sentiment.

“Consumer confidence declined in September as the contagion of the delta variant continued to dampen consumer optimism,” said Lynn Franco, senior director of economic indicators. He added that concerns about the economic situation and short -term growth prospects were worsening, while spending on households, vehicles and key equipment was declining.

On the other hand, consumers are also less optimistic about their income and job prospects. The figure follows the University of Michigan’s early consumer sentiment index, which rose in early September but remained near its lowest level in nearly a decade.