WASHINGTON (AP) - U.S. consumer confidence fell for the second consecutivemonth, sinking to the lowest levels in more than six years as a resurgence ofCOVID-19 infections in many parts of the country heightened pessimism. The Conference Board, a New York research organization, reported Tuesday thatits Consumer Confidence Index declined to a reading of 84.8 in August, thelowest level since May 2014. The drop, which followed a July decline to 91.7, put the index 36% below itshigh point for the year reached in February, before the coronavirus began toseriously impact the United States. Because consumer spending accounts for 70% of economic activity in the U.S., adrop-off in confidence gets a lot of attention from economists. ``Consumer spending has rebounded in recent months but increasing concernsamong consumers about the economic outlook and their financial well-being willlikely cause spending to cool in the months ahead,'' said Lynn Franco, seniordirector of indicators at the Conference Board. The part of the index that measures present conditions decreased sharply withconsumers indicating that both business and employment conditions havedeteriorated sharply over the past month. Consumer optimism about the short-termoutlook and their financial prospects also declined. ``Consumer confidence has now taken two steps back after one giant step forwardin June,'' said Jim Baird, chief investment officer at Plante Moran FinancialAdisors. ``Initial hopes for a faster return to a pre-pandemic normal havefaded.''
(© Copyright 2020 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)
