US Consumer Confidence Slumps in July

Consumer confidence in the United States declined during July, as shown by data released by the Conference Board on Tuesday.

The Consumer Confidence Index decreased in July, after increasing in the previous month.

The index reached 92.6 this month, down from 98.3 in June.

In addition, the expectations index, based on consumers’ short-term outlook for income, business, and labor market conditions, decreased from 106.1 in June to 91.5 this month.

“Consumer Confidence declined in July following a large gain in June,” said 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.”