Mary: This is Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program looks at consumer confidence. Mike, how confident people are about the future has been found to be an important part of the economy. With the challenges we are facing with Covid-19, how has consumer confidence been affected?
Mike: Summary Answer
- You are correct consumer confidence is an important factor
- More confident consumers are more likely to spend and create economic growth
- A major measure of consumer confidence has fallen in recent months, down about 12%
- But much less than the drop during the Great Recession of 2007-09
- Consumer confidence fell then over 60%
- Several factors may account for the difference
- Great Recession was longer, stock market took a while to recover, and cause of recession was economic
- This recession due to the virus, has been short, and federal help has been unprecedented
- Bodes well for the recovery
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.