JP Morgan: US consumer confidence reflects fading fiscal support

JP Morgan: US consumer confidence reflects fading fiscal support

August 31, 2020

United States
Consument.jpg

US consumer confidence declined in August as the Conference Board survey dropped to 84.8, the lowest level since 2014 and significantly below expectations of an increase to 93.0.

Stalemate in Washington over a new fiscal package appears to be taking its toll on the consumer outlook, which is understandable given the crucial role that stimulus cheques and enhanced unemployment insurance benefits have played in protecting incomes for much of this year. In the short term, much will depend on how quickly Congress can agree on the shape of further support. Further out, the pace of recovery in employment will be the key factor in determining the power in the pockets of US consumers. While job growth over the summer has been impressive, the labour market is still on a fragile footing and we expect the pace of recent recovery to fade.

Index level

3108 JP Morgan.jpg

Source: Refinitiv Datastream, The Conference Board, J.P. Morgan Asset Management. Data as of 28 August 2020.

Related posts