Survey Finds Consumer Sentiment On The Decline

The Delta variant of Covid-19 and the associated rise in infections has spooked Americans. Consumer confidence took a dive in August dropping below where it was in April 2020 when the first Covid-19 outbreak halted the US economy, according to a new study from the University of Michigan.

The University of Michigan’s preliminary sentiment index fell by 13.5% from July to a level that was just below the April 2020 low of 71.8. Over the past five decades, the index has only recorded larger losses six other times.

"There is little doubt that the pandemic's resurgence due to the Delta variant has been met with a mixture of reason and emotion," said Richard Curtin, the survey’s chief economist. "Consumers have correctly reasoned that the economy's performance will be diminished over the next several months, but the extraordinary surge in negative economic assessments also reflects an emotional response, mainly from dashed hopes that the pandemic would soon end."