U.S. consumer confidence declined in July for the third consecutive month, dropping 2.7 points since June and reaching the lowest level recorded since February, 2021.
The Conference Board Consumer Price Index, which reflects consumer’s business expectations for future months, stands at 95.7 points, down from last month’s 98.4.
The Present Situation Index, showing the current business expectations of consumers, fell to 141.3 from 147.2 in June. The Expectations Index, which predicts the shot term business expectations, also fell, going down to 65.3 compared to 65.8 last month.
"The decrease was driven primarily by a decline in the Present Situation Index—a sign growth has slowed at the start of Q3. The Expectations Index held relatively steady, but remained well below a reading of 80, suggesting recession risks persist. Concerns about inflation—rising gas and food prices, in particular—continued to weigh on consumers,” Lynn Franco, Senior Director of Economic Indicators at The Conference Board, said in a statement.
"As the Fed raises interest rates to rein in inflation, purchasing intentions for cars, homes, and major appliances all pulled back further in July. Looking ahead, inflation and additional rate hikes are likely to continue posing strong headwinds for consumer spending and economic growth over the next six months,” Franco concluded.
Comments
Post a Comment