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The damage caused by inflation in the pockets of Americans when they pay for or purchase basic products and services has generated distrust in them on how the federal government intends to strengthen the economy.
The most recent report released by the Conference Board reveals that the general index of consumer confidence fell from 77.2 to 102.2, this with respect to last month.
Regarding the indicator that measures the vision of current economic conditions, also decreased from 137.7 to 137.4.
The same happened with the index of short-term expectations of the economy , which went from 77.9 to 70.4 .
In this regard, Lynn Franco, senior director of economic indicators for the Conference Board, pointed out that the data suggests the possibility that next year could recession in the economy.
“Consumer confidence fell again in November, most likely driven by the recent increase in the gas. So the Present Situation Index moderated further and continues to suggest that the economy has lost momentum as the year winds down.
As for consumer expectations regarding the near-term outlook, they remained gloomy. In fact, the expectations index is below 77, which suggests that the The probability of a recession continues to be high “, he indicated.
Consumer spending accounts for almost 60% of economic production and although it is true that a few days ago there were significant economic spillovers through sales made during Black Friday, as well as on Cyber Monday, this cannot be considered a reliable indicator of the health of the economy, since it is more due to the custom of buying end-of-year gifts and not to the recurring expenses of Americans during a common month.
In this regard, Vivek Pandya, principal analyst at Adobe Digital Insights, pointed out that the high volumes of purchases registered a few days ago were the result of the position taken by retail stores to offer high discounts for not be left with an inventory of products the following year.
“With excess supply and a weakening consumer spending environment, consumers retailers made the right decision this season to drive demand through deep discounts,” he said.
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