United States: Consumer confidence falls in July
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.”