U.S. consumer confidence drops to 96.1 as virus spreads

WASHINGTON » U.S. consumer confidence fell to a reading of 96.1 in November as rising coronavirus cases pushed American optimism down to the lowest level since August.

The November reading released Tuesday by the the Conference Board said represents a drop from a revised 101.4 in October. The decline reflected a big drop in consumer expectations for income, business and labor market conditions.

“Heading into 2021, consumers do not foresee the economy nor the labor market gaining strength. In addition, the resurgence of COVID-19 is further increasing uncertainty and exacerbating concerns about the outlook,” said Lynn Franco, senior director of Economic Indicators for the Conference Board.

Consumer confidence is closely watched for signals it can provide of how willing households are to spend. Consumer spending accounts for 70% of economic activity in the U.S.