U.S. consumer sentiment nosedives as Delta variant spikes

Consumer sentiment plummeted in early August, according to a widely followed survey.

Why it matters: Deteriorating sentiment signals trouble for the economy if it means consumers pull back spending.

Before the August reading, sentiment had generally been improving for much of this year, as the U.S. economy was on a tear going into July. Then COVID infections spiked as the Delta variant spread.

By the numbers: According to preliminary August survey results, the University of Michigan’s consumer sentiment index plunged to 70.2 from 81.2 in July.

This was the lowest reading since December 2011 and was much worse...