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Consumers are more anxious after a record coronavirus outbreak that’s threatening jobs again.
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The numbers: Consumer attitudes toward the economy suffered a jolt in November after a record increase in coronavirus cases, a closely followed “sentiment” survey showed.
The second and final reading of the consumer sentiment index from the University of Michigan fell to 76.9 in November from an initial 77 earlier in the month and 81.8 in October.
Economists polled by MarketWatch had forecast the index to slip to 76.8.
By a variety of measures consumers turned more pessimistic this month owing to a record spike in coronavirus cases that has led some states to reimpose business restrictions and limit gatherings in public.
There’s a growing worry the economy could stumble again if the situation gets any worse and Congress fails to approve more emergency aid.
Other surveys such as the long-running consumer confidence index from the Conference Board and a daily report by Morning Consult also declined in November. The Morning Consult report is part of the MarketWatch Coronavirus Recovery Tracker.
Read: Raging pandemic singes economy. Darker days ahead?
What happened: An index that measures current conditions actually rose to 87 in November from 85.8 last month
Yet an index that measures expectations for the next six months slipped to 70.5 from 71.3 earlier in the month and 79.2 in October.
While consumer attitudes are more hopeful compared to the early days of the pandemic, Americans are still plenty worried. Some 10 million people haven’t been able to return to work and more layoffs could take place if the virus doesn’t relent soon.
What’s more, extra federal benefits for the unemployed will expire at the end of the year unless Congress extends them. The loss of the money could be a severe blow for many people that are relying on them.
For the first time in four years, meanwhile, Democrats are more optimistic than Republicans and are likely to become even more so after the election of Joe Biden as president. Republicans have lost confidence since the defeat of President Trump.
Even the joy of political victory, however, has not been enough to buoy the spirits of Democrats even further in light of the latest viral outbreak.
Big picture: Consumers are less optimistic about the economy, but most businesses are already looking toward next year and the possibility of coronavirus vaccines being widely available. That’s helping to keep the economy on a steady growth path.
The economy can weather the latest coronavirus rough patch if companies continue to add workers or at least avoid major layoffs. Another major financial aid package from Congress would add some insurance for the economy, but Democrats and Republicans have been divided for months.
Read: U.S. businesses grow faster despite coronavirus spike
Market reaction: The Dow Jones Industrial Average DJIA, -0.57% and S&P 500 SPX, -0.15% fell in Wednesday trades. The Dow topped 30,000 on Tuesday for the first time ever and closed at a record high.
