A sales associate helps customers as they consider the purchase of a big-screen television at a Costco warehouse on Wednesday, Nov. 18, 2020, in Sheridan, Colo. U.S. consumer confidence fell to a reading of 96.1 in November as rising coronavirus cases pushed Americans’ confidence down to the lowest level since August. The Conference Board said the November reading represented a drop from a revised 101.4 in October. (AP Photo/David Zalubowski)
By Matt Ott
A closely-watched gauge of U.S. consumer confidence tumbled in December as rising coronavirus cases dragged American optimism to its lowest level since the summer.
However, rising pessimism is now spreading during the crucial holiday season, which could make or break a number of retailers, airlines, restaurants, and other sectors that have been hammered financially during the pandemic.
The December reading of 88.6 released Tuesday by the Conference Board is a sharp decline from last month, which was revised downward to 92.9, and it is far worse than economists had expected.
It may be an ominous sign for an economy in which consumer spending accounts for 70% of all economic activity.
The Commerce Department reported last week that U.S. retail sales fell a seasonally adjusted 1.1% in November, the biggest drop in seven months, and also worse than most were expecting. The drumbeat of weak economic data may be providing a grim preview of Christmas receipts, which can account for a quarter or more of a retailer’s annual sales.
The index measuring consumers’ assessment of current business and labor market conditions also fell sharply, from 105.9 last month to 90.3 in December. Consumers’ short-term outlook for income, business, and labor market conditions ticked up slightly from 84.3 in November to 87.5 this month, possibly because of recent approvals for COVID-19 vaccines.
It remains to be seen how Congress' $900 billion relief bill, which was passed Monday and too late for the survey, will affect consumer behavior this winter.
The bill combines coronavirus-fighting funds with financial relief for individuals and businesses. It would establish a temporary $300 per week supplemental jobless benefit and a $600 direct stimulus payment to most Americans, along with a new round of subsidies for hard-hit businesses, restaurants, and theaters and money for schools, health care providers, and renters facing eviction.
Updated on December 22, 2020, at 11:26 a.m. ET with additional details.
Ben & Jerry’s co-founder Jerry Greenfield is leaving the ice cream brand after 47 years. He says the freedom the company used to have to speak up on social issues has been stifled
The Trump administration has issued its first warnings to online services that offer unofficial versions of popular drugs like the blockbuster obesity treatment Wegovy.
Oracle soars as it cashes in on the AI boom, Plus: Starbucks shares continue to fall under its new CEO, and does anybody actually want a new iPhone Air?
Swedish buy now, pay later company Klarna is making its highly anticipated public debut on the New York Stock Exchange Wednesday, the latest in a run of high-profile initial public offerings this year. The offering priced at $40 Tuesday, above the forecasted range of $35 to $37 a share, valuing the company at more than $15 billion. The valuation easily makes Klarna one of the biggest IPOs so far in 2025, which has been one of the busier years for companies going public. Other popular IPOs so far this year include the design software company Figma and Circle Internet Group, which issues the USDC stablecoin..
Oracle co-founder Larry Ellison wrested the title of the world’s richest man from longtime holder Elon Musk early Wednesday as stock in his software giant rocketed more than a third in a stunning few minutes of trading. That is according to wealth tracker Bloomberg. A college dropout, the 81-year-old Ellison is now worth $393 billion, Bloomberg says, several billion more than Musk, who had been the world’s richest for four years. The switch in the ranking came after a blockbuster earnings report from Oracle. Forbes still has Musk as the richest, however, valuing his private businesses much higher.
