The Consumer Index Has Fell Because Of The Government Shutdown
There is currently a panic situation among the consumer and mostly because of the government shutdown. According to the recent reports published by The Conference Board which shows that the confidence index of the US consumers has been falling significantly, and they are against the decision of government shutdown. The Conference Board which is a business research group surveyed some people which stated that the Consumer index has fallen to 120.2 in the month of January from 126.6 In December. The organization measures the consumer index by considering various factors but the main thing which they think is the consumer’s expectation for the future of the country’s economy. After looking at this report, it seems like many people have suffered because of President Trump’s decision of Government Shutdown.
A few days ago there was a report published by some economists which stated that the current shutdown of the government must have cost around $6 billion. The government shutdown lasted for 35 days which became the most extended shutdown in the history of the US. There are more than 800000 Federal employees who were working without any paycheck, and that could be the reason behind the downfall of the consumer index. The key management of The Conference Board thinks that incidents like this leave its impact on consumer confidence but only for a short period. The experts believe the confidence index might go up in the next few weeks since the Trump administration has resumed the work.
On the other hand, consumers are also worried about the economic condition of the country because the reports are predicting that the economic growth of the US might fall in the first quarter of this year. It seems like the Trump administration might have to work harder to regain the trust of consumers.