The US Consumer Confidence Index fell to 90.8 in July, down 1.4 points from June's revised figure of 92.2, according to the Conference Board (CB) released on local time July 28. The decline reflects weakening consumer assessments of current business conditions and labor market perceptions. Dana Peterson, CB's chief economist, noted the index continued its overall downward trend that began in late 2021, with the Present Situation Index declining for three consecutive months while the Expectations Index remained in negative territory.
The July reading came in below market expectations of 92.3, according to Yonhap Infomax's market consensus. The Consumer Confidence Index combines the Present Situation Index, which measures consumer evaluations of current business and labor market conditions, with the Expectations Index, which reflects short-term outlooks on income, business, and labor market conditions.
Present Situation Index Records Third Consecutive Monthly Decline
The Present Situation Index dropped 3.6 points to 114.9 in July, marking the third consecutive monthly decline. In contrast, the Expectations Index remained unchanged at 74.7 from the previous month.
Peterson stated that "consumer confidence eased slightly in July, continuing the overall downward trend since late 2021." She added that "while the Present Situation Index was less positive for three consecutive months, the Expectations Index remained in negative territory. Both consumer assessments of current business conditions and perceptions of the current labor market weakened."
The economist noted that "consumers' written responses about factors affecting the economy continued to be mostly pessimistic in July. While mentions of prices and oil and gas eased, they remained at high levels."
Consumer Outlook Shows Mixed Sentiment on Jobs and Income
The proportion of consumers expecting business conditions to improve declined to 17.8% in July from 18.9% in June, a decrease of 1.1 percentage points. Conversely, those anticipating deterioration rose 0.4 percentage points to 21.1% from 20.7% the previous month.
Regarding employment, 16.7% of consumers expected more jobs to become available, up 1.1 percentage points from June's 15.6%. The share expecting job reductions fell 0.2 percentage points to 25.3% from 25.5% in June.
On income expectations, 20.3% of consumers anticipated income increases, down 0.4 percentage points from June's 20.7%. Those expecting income decreases rose 0.1 percentage points to 13.0% from 12.9% the previous month.
FAQ
What was the US Consumer Confidence Index for July?
The US Consumer Confidence Index fell to 90.8 in July, down 1.4 points from June's revised figure of 92.2, according to the Conference Board released on local time July 28.
Why did the Consumer Confidence Index decline in July?
The decline reflected weakening consumer assessments of current business conditions and labor market perceptions. The Present Situation Index dropped 3.6 points to 114.9, marking the third consecutive monthly decline, while consumer evaluations of both business conditions and labor market conditions weakened.
How did the July reading compare to market expectations?
The July Consumer Confidence Index of 90.8 came in below market expectations of 92.3, according to Yonhap Infomax's market consensus.
