United States: Consumer confidence falls in July
July 29, 2020
The Conference Board’s consumer confidence index decreased to 92.6 in July from 98.3 in June. Therefore, the index fell further below the 100-threshold that separates pessimism from optimism. July’s result fell short of market expectations of 94.5 and likely reflected increased concerns amid a significant pick up in new Covid-19 cases and a tightening of lockdown measures in some parts of the country.
American households’ assessment of the current state of the economy increased, but their confidence about the short-term outlook for income and business conditions declined in July.
Lynn Franco, senior director of economic indicators at the Conference Board, noted:
“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.”
Author: Steven Burke, Economist