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- U.S. consumer confidence drops more than forecast in July
U.S. consumer confidence drops more than forecast in July
U.S. consumer
confidence drops more than forecast in July
The Conference
Board announced on Tuesday its U.S. consumer confidence fell 5.7 points to 92.6
in July from 98.3 in June.
Economists had
expected consumer confidence to come in at 94.5.
June’s consumer
confidence reading was revised up from originally estimated 98.1.
The survey
showed that the expectations index plunged from 106.1 last month to 91.5 this
month. Meanwhile, the present situation index rose from 86.7 in June to 94.2.
“Consumer
Confidence declined in July following a large gain in June,” noted Lynn Franco,
Senior Director of Economic Indicators at The Conference Board. “The Present
Situation Index improved, but the Expectations Index retreated. Large declines
were experienced in Michigan, Florida, Texas and California, no doubt a result
of the resurgence of COVID-19. Looking ahead, consumers have grown less
optimistic about the short-term outlook for the economy and labor market and
remain subdued about their financial prospects. Such uncertainty about the
short-term future does not bode well for the recovery, nor for consumer
spending.”
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