Michigan University revealed a record for the last ten years of key indicators of customer sentiment index (Consumer Sentiment Index). The mood of Americans spoiled a new strain of coronavirus, transmits CNBC.
Index, according to preliminary data, in August will fall to 70.2 points when forecasts at 81.3 points. In July, the index was 81.2 points. Thus, in a month, the indicators decreased by 13 percent. Such large-scale index collars happened extremely rarely, emphasize economists.
Over the past half century, the sentiment index has undergone larger losses only in six other polls, they all were associated with sudden negative changes in the economy, “said Richard Curtin, chief economist of Michigan consumer survey (Michigan’s Surveys of Consumers).
For a year and a half of the pandemic, the minimum value was recorded in April 2020. Then the index dropped to 71.8 points. Another significant decline in consumer sentiment index was recorded in October 2008 and was caused by a financial crisis.
The current leap occurred due to the fact that Delta option quickly spread to the United States, which forced some states and cities to return opposition limitations. Hospitals in many states of the southern part of the country report a shortage of beds for receiving patients.
According to Curtin, health concerns will probably cause a short-term reduction in consumer confidence. Optimistic moods will be returned after stabilization of the Coronavirus situation.
“Consumers reasoned that the economy indicators will decrease over the next few months, but an extraordinary surge in negative economic assessments also reflects the emotional reaction, mainly due to the broken hopes that the pandemic will soon end,” said Kurtin.
In the summer of 2020, Russia entered the top five leaders in the worst index indices of consumer sentiment. Then only 10 percent of the respondents were optimistic.