Consumer Confidence Declined in November

The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released today (11-30-21) their Consumer Confidence Index® (CCI) for November 2021. The CCI declined in November following an uptick in October and decreases in August, July, and June. The Index now stands at 109.5 (1985=100), down from 111.6 in October.

The Present Situation Index — based on consumers’ assessment of current business and labor market conditions — fell to 142.5 from 145.5 last month.

The Expectations Index — based on consumers’ short-term outlook for income, business, and labor market conditions — dropped to 87.6 from 89.0 last month.

In a statement prepared for the release of this month’s CCI, Lynn Franco, Senior Director of Economic Indicators at The Conference Board said, “Consumer confidence moderated in November, following a gain in October. Expectations about short-term growth prospects ticked up, but job and income prospects ticked down. Concerns about rising prices — and, to a lesser degree, the Delta variant — were the primary drivers of the slight decline in confidence. Meanwhile, the proportion of consumers planning to purchase homes, automobiles, and major appliances over the next six months decreased.”

“The Conference Board expects this to be a good holiday season for retailers and confidence levels suggest the economic expansion will continue into early 2022,” Franco added. “However, both confidence and spending will likely face headwinds from rising prices and a potential resurgence of COVID-19 in the coming months.”