After falling in June to 49.3, the widely followed Conference Board Consumer Confidence Index dropped once again in July to 46.6. The Conference Board's Present Situation Index and the Expectations Index also declined in July, The Present Situation Index dipped to 23.4 from 25.0 in June and the Expectations Index fell to 62.0 from the June level of 65.5. Read the release.
"Consumer confidence, which had rebounded strongly in late spring, has faded in the last two months. The decline in the Present Situation Index was caused primarily by a worsening job market, as the percent of consumers claiming jobs are hard to get rose sharply," according to Lynn Franco, Director of The Conference Board Consumer Research Center. Franco added: "The decline in the Expectations Index was more the result of an increase in the proportion of consumers expecting no change in business and labor market conditions, as opposed to an increase in the percent of consumers expecting conditions to deteriorate further. However, more consumers are pessimistic about their income expectations, which does not bode well for spending in the months ahead."
Kathleen M. McBride (firstname.lastname@example.org) is Editor in Chief of Wealth Manager and a member of The Committee for the Fiduciary Standard.