The Conference Board revealed that the pandemic will cause major declines in consumer confidence
According to the research, as long as job losses reduce incomes and stress household finances, consumer demand will keep weakening, further destroying workplaces. As a result, those losses will affect personal finances and limit spending intentions.
The study highlighted that the wage and income support programs in the US, UK, and Canada may struggle to dispense consumer aid in time, thus eliminating gaps in spending and bolster confidence.
Along with that, such emerging markets as Brazil, Mexico, and India are likely to face weak household consumption and consumer confidence for a longer period. It is expected to be driven by job losses, falling incomes, and a general lack of a social safety net.
The severity of lockdowns also plays a key role, according to the report. For example, South Korea, reporting some of the earliest signs of downgrading consumer confidence due to COVID-19, didn’t enact economic lockdowns or mass layoffs. The study highlights that those avoidances may lead to a faster recovery in confidence than in other markets.
We’ve reported that Italian consumers are optimistic about post-lockdown future.