The US-China Trade Calamity Directs New Low in Consumer Confidence in the US
SThe US consumer confidence is experiencing a sharp downturn in September. It is reaching a new low at 125.1. This dip is from 134.2. Experts and analysts were predicting this value. Therefore, it is a big blow. In nine months, this is the worst ever value. Hence, the drop is the highest in the recent past. There are several reasons for this drip. One of the most important factors is the ongoing trade conflict between China and the US. Hence before any concrete solution, the consumer confidence values will further drip. Consumer confidence is the measuring parameter that decides consumer behavior. Hence, consumer confidence strongly affects consumer purchase. It also affects a sale, and borrowing practices. Consumer confidence is depending largely on the present status of businesses. It also depends on labor conditions. Therefore, low consumer confidence index is suggesting poor market conditions. This is directly affecting the consumer mindset.
Therefore, economic and financial clashes between countries are harmful. It directly affects consumer confidence. The US-China trade will severely affect consumer confidence. Thereby, leading to poor business accomplishments. Lynn Franco, Spokesperson, Economic Indicators, shared his thoughts. He says worsening trade conditions and international tension are discouraging consumers. Hence, critically low consumer confidence is a major challenge.
Consumer confidence decides how consumers are feeling about the economy. Also, their personal financial conditions. Any major disruption in economic affairs sharply affects consumer confidence. The US is showing one of the lowest figures in consumer confidence. Therefore, this is going to affect the job scenario in the US. Also, household spending. Household spending decides market growth. Hence, low household spending indicates poor economic growth. Many reports indicate drastic low in consumer confidence. So Consumers are losing confidence in trade and commerce.