US: Consumer Confidence ends 2020 on a soft note – Wells Fargo

Largely reflecting a weak labor market, consumer confidence fell for the second straight month in December, explained analysts at Wells Fargo. They see that encouraging news on vaccine releases should go a long way to boosting spirits in the months ahead.

Key Quotes: 

“Consumer confidence unexpectedly fell in December from a downwardly revised November performance. The resurgence of COVID cases in recent weeks and subsequent restrictions on activity weighed heavily on the present situation index.”

“Not all was bad in today’s report, as consumers’ expectations were more optimistic about the short-term outlook than last month. Encouraging news on the eagerly awaited release of vaccines that could help end the pandemic boosted sentiment around business conditions, employment and income prospects over the next six months.”