Consumer confidence in U.S. falls to 6-year low

Aug. 25 (UPI) -- Consumer confidence in the United States has fallen to a six-year low, due mainly to the surge in COVID-19 cases this summer, new data showed Tuesday.

The Consumer Confidence Index fell to 84.8 from 91.7 in July, marking the second straight monthly decline and its lowest point since early 2014. The decline eclipsed even April's reading of 85.7 early in the health crisis, the Conference Board said Tuesday.

Many economists expected the index to rise to about 93.0.

The Present Situation Index, which measures how Americans feel about the state of the economy, decreased sharply, with consumers citing deteriorating business and employment conditions over the past month.

The share of consumers who consider business conditions "good" declined by 1.1%, while those who said they are "bad" increased by 4.7%.

Consumers' assessment of the short-term future also declined and "continues on a downward path" despite a recent rebound in consumer spending -- which will likely cool in the months ahead, the Board said.

The period of decline coincides with the end of $600 enhanced federal unemployment payments to Americans, which expired a month ago. Lawmakers and the White House are at an impasse over a new COVID-19 relief package that might include new unemployment payments and additional help for small businesses.