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The numbers: Consumer confidence fell in November to the lowest level in nine months because of worries about high inflation — and optimism could dip again if a new strain of the coronavirus that’s more resistant to vaccines keeps spreading.
The index of consumer confidence dropped to 109.5 from 111.6 in October, the privately run Conference Board said Tuesday. It was the fourth decline in the past five months.
Economists polled by The Wall Street Journal had forecast the index to fall to 110.
Big picture: Americans were already worried about the biggest surge in U.S. inflation in 30 years. Now the new omicron strain of the coronavirus is raising fresh angst.
So far neither rising prices nor the virus has kept people from spending, however. Stronger spending has given a lift to the economy as the year winds down.
By and large, the spending habits of Americans are determined more by how they view the labor market than anything else. Looked at that way, the economy is still in good shape. The labor market is very tight and jobs are easy to find.
Market reaction: Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
sank in Tuesday trades.
