The lack of progress against coronavirus is making California shoppers anxious, pushing the state’s consumer confidence to a seven-year low.
The Conference Board reports its consumer confidence index for California was at 64.7 for July — down from a revised 77.5 a month earlier and far below 114.5 a year ago. The last time the index was lower was in March 2013, early in the Great Recession’s economic recovery.
Let’s recall that in late winter the pandemic’s spread forced the state to issue tough “stay at home” orders that stifled business and pushed unemployment to record highs. The initial lockdown cooled the spread of COVID-19 and allowed for many business reopenings, resulting in rehirings and raised optimism.
That helps explain why one measure inside the confidence index was up in July: California consumers’ view of current conditions rose from June though this optimism is one-third of what it was before March.
Recently rising virus infections and deaths, compounded by protests against pandemic prevention tools such as masks and social distancing, forced the state into an economic U-turn. These tighter restrictions will keep unemployment high and boost economic doubts. So it’s little surprise that shoppers’ outlook statewide, as measured by another slice of the index, fell to a seven-year low.
California isn’t alone. The Conference Board also tracks seven other big states. For the month, overall confidence rose in only two states while not improving anywhere over the year. Current conditions were better in five states for the month and none over 12 months. Expectations rose in just one state for the month and for the year.
Nationally, the U.S. consumer confidence index fell to a four-year low: 92.6 in July vs. 98.3 a month earlier and down from 135.8 a year ago.
U.S. shoppers’ view of current conditions increased in the month and was lower over 12 months. Meanwhile, consumers’ economic hopes were worse compared with the previous month and less optimistic vs. a year earlier.
As for two major purchases, the national view …
Plans to buy a home within six months? 7.4% this month vs. 6.8% a month earlier and 7.4% a year ago. Five-year average? 6.2%.
Car purchase plans? 11.5% this month vs. 11.9% a month earlier and 12.5% a year ago. Five-year average? 12.5%.
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July 29, 2020 at 03:34AM
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Coronavirus pushes California consumer confidence to 7-year low - OCRegister
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