Impact of COVID-19 on Consumer
Expectations Varies by US Region, but Pessimism Spreading Fast
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The Expectations Index, part of The Conference Board Consumer
Confidence Survey®, measures consumer expectations in the US over the next
six months. This March, the Expectations Index suffered one of its largest
one-month drops in 50 years. The degree of pessimism, however, varies widely
by region. Pessimism was most pronounced in the Middle Atlantic and Pacific
regions. Both areas contain states that emerged as early COVID-19 hotspots,
so it’s no surprise falloffs in consumer expectations were the worst there.
Greater pessimism was also expressed among consumers in the West South
Central and East South Central regions. Both these areas are emerging as
hotspots, and both have oil-producing sectors grappling with the fallout from
the Russia-Saudi Arabia oil price war. There were a few bright spots, where
consumers retained a degree of optimism. However, with the intensification of
the COVID-19 in late March, we expect pessimism to blanket the entire nation
in April.
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