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    January 8, 2021

    Consumer Confidence Falls Further in December

    Written by David Schollaert

    U.S. consumer confidence continues to fall as global pandemic fatigue sets in and genuine relief still seems far away. Despite a slight correction and stability throughout the summer months, the composite value of consumer confidence, reported by The Conference Board, has now slipped repeatedly during the fourth quarter from 101.8 in September to 88.8 in December. The three-month moving average (3MMA) fell to 94.3 in December compared to 98.5 in November. The 3MMA dipped notably from the recent high of 130.4 in February and 127.0 year over year. Since this indicator is quite volatile, the moving average is used to reduce monthly variability; however, consumer confidence is clearly on a downward move entering 2021.

    “Consumers’ assessment of current conditions deteriorated sharply in December, as the resurgence of COVID-19 remains a drag on confidence,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “As a result, consumers’ vacation intentions, which had notably improved in October, have retreated. On the flip side, as consumers continue to hunker down at home, intentions to purchase appliances have risen. Overall, it appears that growth has weakened further in Q4, and consumers do not foresee the economy gaining any significant momentum in early 2021.”

    David Schollaert

    David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.

    Read more from David Schollaert

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