US Markets
Consumer Confidence Logs Surprise Drop, With 'Little Improvement' in Business Conditions Seen Ahead
US consumer confidence unexpectedly fell in July, with "little improvement" in business conditions expected over the next six months, a survey by the Conference Board showed Tuesday.The consumer confidence index dropped to 90.8 this month from June's upwardly revised reading of 92.2. The consensus was for a 92.4 print in a Bloomberg survey."Consumer confidence moderated slightly in July, continuing a general downward sloping trajectory since late 2021," Conference Board Chief Economist Dana Peterson said. "Consumer appraisals of current business conditions and, to a lesser extent, perceptions of the current labor market both softened."The present situation measure, which takes into account consumers' assessment of current business and labor market conditions, dropped 3.6 points to 114.9, marking a third straight monthly drop. The expectations component, which factors in consumers' short-term outlook for income, business, and labor market conditions, held steady at 74.7 in July, the survey showed."Looking ahead, consumers anticipate little improvement in business conditions over the next six months, but expectations for the labor market were slightly less negative," Peterson said. "Expectations for household incomes moderated, but remained optimistic overall."Consumers' average and median one-year inflation expectations were "less elevated" this month, while they planned to spend more on services over the next six months, according to the survey.Earlier this month, a University of Michigan survey showed US consumer sentiment in July hit the highest level since February amid easing price pressures at the pump, though renewed tensions in the Middle East could weigh on confidence going forward.US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu are expected to discuss the Iran war, among other things, during their meeting at the White House, CNN reported Tuesday. The status of US-Iran negotiations is in dispute, with both parties offering contradicting views, according to the report.
