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US consumer confidence slips to 90.8 in July as expectations lag
The Expectations Index held at 74.7, below the 80 recession-linked threshold, while 61.3% of respondents still expect higher interest rates over the next 12 months.
US consumer confidence in the United States weakened further in July, with households less upbeat about current business conditions and the labor market, even as inflation expectations eased, according to Action Forex.
The Conference Board’s Consumer Confidence Index fell 1.4 points to 90.8 from a revised 92.2 in June. The Present Situation Index dropped 3.6 points to 114.9 for its third straight monthly decline, while the Expectations Index stayed at 74.7, well below the 80 level historically associated with recession risks.
Dana M. Peterson, chief economist at The Conference Board, said the index has been in a gradual downtrend since late 2021 as assessments of current conditions and, to a lesser extent, the labor market deteriorated. She also noted that while future employment expectations became slightly less pessimistic, consumers continued to expect little improvement in overall business conditions over the next six months.
Under the headline figures, both average and median 12-month inflation expectations eased in July, and households still expected stock prices to rise over the next year. At the same time, 61.3% of respondents continued to anticipate higher interest rates over the next 12 months, unchanged from June, suggesting consumers remain comfortable with restrictive monetary policy even as confidence softens.