US Consumer Confidence tumbles, but forward-looking measures improved – Wells Fargo

Data released on Tuesday showed a record slide in Consumer Confidence, measured by The Conference Board. Analysts at Wells Fargo point out the present situation index fell more than 90 points but forward-looking measures improved.

Key Quotes: 

“Amid unprecedented job losses, stay-at-home orders and continued choppiness in financial markets, consumer confidence fell to 86.9, the lowest since 2014, bringing the twomonth decline to more than 45 points.”

“Even amidst this lockdown and the joblessness that comes with it, expectations actually rose. In fact, at 93.8 in April, expectations is not far off from 94.5 where it was in October.”

“Until today the record for the largest one-month drop in the present situation index stood for 50 years. The 39.7-point drop in February of 1970 was blown out of the water today by a freefall
decline of more than 90 points. It’s not just bad, it’s awful.”

“There were glimmers of hope. The share of consumers expecting business conditions will improve rose from 18.7% to 40.0% and those expecting more jobs rose from 16.9% to 41.0%.”