Global consumer confidence posted a record plunge in the 2nd quarter as the coronavirus pandemic slammed job prospects, finances

• Global consumer confidence slumped by the most on record in the second quarter as the coronavirus pandemic slammed job prospects and weighed on finances, according to a Wednesday report from The Conference Board.
• The board's Global Consumer Confidence index fell to 92 from 106 in the first quarter. A reading below 100 indicates there are more pessimistic views and optimistic ones.
• "Early signs of economic rebound in several markets do not necessarily portend a quick recovery in consumer confidence in the coming months," said Bart van Ark, chief economist of The Conference Board and a report co-author, in a statement.

Global consumer confidence suffered a record drop in the second quarter as the coronavirus pandemic continued to rage on, slamming job prospects and weighing on personal finances, according to a Wednesday report from The Conference Board.

The Global Consumer Confidence index fell to 92 from 106 in the first quarter, the organization reported Wednesday. A reading below 100 indicates there are more pessimistic views than optimistic ones.

The 14-point drop is the most on record dating back to 2005 for the index, and is twice as deep as the largest drop during the global financial crisis, according to the report. It's also the first time the gauge has showed more pessimistic views since 2016.

"Early signs of economic rebound in several markets do not necessarily portend a quick recovery in consumer confidence in the coming months," said Bart van Ark, chief economist of The Conference Board and a report co-author, in a statement.

He continued: "Countries vary in their approaches to containing the pandemic, managing the direct impacts on employment and income, and the trust populations have in their governments, which all influence consumers' confidence that a recovery will take hold."

Consumer confidence was driven down by declining job prospects and worries about personal finances in the next year, according to the report.

Some markets were more affected by a worsening job outlook, including mature economies in North America and Europe. This hit to confidence was seen the most in major markets such as the US, Canada, France, Germany, and the UK.

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In others, such as Latin America and some Asia-Pacific markets, the drop in confidence was propelled mostly by falling expectations about personal finances in the next year.

Emerging markets such as Argentina, Brazil, and Russia were weighed down by both job and finance worries, according to the report. In Italy, Spain, Singapore, Mexico, and the UAE, the "pandemic-induced domino effect" of business closures and falling consumer confidence kicking off a negative spending cycle played out more fully than in other parts of the world, the report said.

As confidence dipped, global consumers spent more on necessities and less on discretionary items in the quarter, likely reflecting their home-bound states, according to the report.

"Looking forward, more consumers than before plan to limit spending on annual vacations, rein in short trips, and spend less on out-of-home entertainment in the long term," said Denise Dahlhoff, senior researcher in consumer research at The Conference Board.

The study also found that consumer confidence was more resilient in markets such as South Korea and Taiwan, where effective mitigation efforts by authorities earned citizen trust.