Consumer Confidence Falls to 7-Month Low
Consumer confidence declined for a third consecutive month in September as concerns about the Delta variant and higher prices continued to dampen optimism, according to the Conference Board.
The index dropped 5.9 points from 115.2 to 109.3 in September, the lowest level since March. Spending intentions for homes, cars, and major appliances also retreated, however, consumer confidence was still at a high level and the consumer price index has shown signs of easing inflation.
The share of respondents planning to buy a home within the next six months dropped to 5.6% in September while the share of respondents planning to buy a newly constructed home and for those who planning to buy an existing home stayed unchanged at 0.5% and 2.1%. Surging home prices and lack of inventory could further harm affordability and hinder ownership opportunities.