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.
The Tony Awards on Sunday lured 4.85 million viewers to CBS, its largest broadcast audience in six years. CBS says Monday that Nielsen data shows the telecast — hosted by “Wicked” star Cynthia Erivo — scored a 38% increase over last year’s 3.53 million viewers. That’s the largest audience for the Tonys since 2019, when the telecast that year nabbed 5.4 million viewers and “Hadestown” was crowned best new musical. The latest version also had to compete with the second game of the NBA Finals, between the Thunder and Pacers,
After stumbling out of the starting gate in Big Tech’s pivotal race to capitalize on artificial intelligence, Apple tried to regain its footing Monday during a developers conference that focused mostly on incremental advances and cosmetic changes in its technology.
Six weeks before UnitedHealthcare CEO Brian Thompson was gunned down outside a Manhattan hotel last December, Luigi Mangione mused about rebelling against “the deadly, greed fueled health insurance cartel” and expressed that killing the executive “conveys a greedy bastard that had it coming."
Shaquille O’Neal and Allen Iverson once clashed on the court in the 2001 NBA Finals, but now the basketball legends are joining forces to revive the Reebok brand they helped make iconic.
Midea is voluntarily recalling about 1.7 million of its popular U and U+ Smart air conditioners because pooled water in the units may not drain fast enough, leading to mold growth.
