Consumer Confidence Continues Falling in July

U.S. consumers continued to feel dour about the economy, according to the latest report from The Conference Board. The board’s widely watched Consumer Confidence Index sagged again in July, continuing a slow descent that’s been evident for almost five years now, the board said in a news release.

Specifically, for July, the index fell by 1.4 points to 90.8 (1985=100) in July, down from an upwardly revised 92.2 in June. The index consists of two major components: The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—and The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions. For July, the Present Situation gauge fell by 3.6 points to 114.9, its third consecutive monthly decline, while Expectations remained unchanged at 74.7.

“Consumer confidence moderated slightly in July, continuing a general downward sloping trajectory since late 2021,” said Dana Peterson, Chief Economist, The Conference Board. “The Present Situation Index was less positive for a third consecutive month while the Expectations Index remained in negative territory. Consumer appraisals of current business conditions and, to a lesser extent, perceptions of the current labor market both softened. Looking ahead, consumers anticipate little improvement in business conditions over the next six months, but expectations for the labor market were slightly less negative. Expectations for household incomes moderated but remained optimistic overall.”

To find out what specific concerns are on consumers’ minds, the board takes write-in responses on factors the populace sees affecting the economy. “References to prices and oil and gas eased in frequency but remain elevated,” the board said of the July responses. “Comments about food and grocery prices increased. Mentions of war, geopolitics and conflict eased during the sample period. However, as the fighting has reaccelerated quite recently there could be an increase in these mentions in the revised data for July. Notably, references to jobs and unemployment picked up slightly.”

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