Thread by @MorningConsult

NEW: Consumer Sentiment Sinks Despite Progress Against Delta Variant morningconsult.biz/3mlEuqM via @KaylaBruun

#EconTwitter #GDP

When the Q3 #GDP report is released this morning, a weaker than previously anticipated growth rate will likely reflect the impact of the delta variant on consumer spending. morningconsult.biz/3mlEuqM

Delta is no longer the dominant driver of consumer sentiment.

Our Index fell 1.8 points in the 30-day period ending Oct. 21, despite positive developments: Daily COVID-19 cases fell, a higher share of the population is earning paychecks and the S&P 500 climbed 4.5%. #GDP

Buying conditions are influencing the deteriorating outlook.

The most significant driver of the decrease in consumer sentiment was a 4.4-point decline in consumer perceptions of current buying conditions. morningconsult.biz/3mlEuqM

Consumers report no improvement in supply chain disruptions.

One month after we first surveyed Americans about shortages and delivery delays across various product categories, consumers reported little indication of improvement. morningconsult.biz/3mlEuqM

Prices are up and expected to keep climbing.

Pervasive shortages are not only making items difficult to find, but also driving up prices. 50% of Americans in October decided against a purchase because the item was more expensive than expected. morningconsult.biz/3mlEuqM