Consumer confidence recorded it largest decline in more than six years due in part to the coronavirus outbreak, according to the Investor’s Business Daily/TIPP Economic Optimism Index.
The IBD/TIPP Economic Optimism Index, a collaboration of Investor’s Business Daily and TechnoMetrica Institute of Policy and Politics, also blamed uncertainties regarding the 2020 presidential election and a steep-sell off in the U.S. stock market for the decline.
Its March reading said the index retreated from a 16-year high last month and declined 5.9 points or 9.9% to a reading of 53.9 – the largest drop since October 2013. An index score of 50 is considered neutral. Anything above 50 is considered positive.
An accompanying IBD/TIPP survey found 53% of Americans say the economy is improving. The optimism was felt across all 21 demographic groups IBD/TIPP monitor on a monthly basis
But 77% say it is likely the coronavirus will have a negative impeach on the U.S. economy.
The index is compiled from a survey of 901 people taken Feb. 20-29. The margin of error is plus or minus 3.3 percentage points.