July US Consumer Confidence Falls on Decline in Current Conditions, Expectations Unchanged
The Conference Board's measure of consumer confidence decreased to 90.8 in July from 92.2 in June, below a reading of 92.4 expected in a survey compiled by Bloomberg.The present situation reading fell to 114.9 from 118.5, while the expectations reading remained unchanged at 74.7.The current assessment of both employment and business conditions declined in July."The Present Situation Index was less positive for a third consecutive month while the Expectations Index remained in negative territory," said Dana Peterson, Chief Economist at The Conference Board."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 added. "Expectations for household incomes moderated but remained optimistic overall."The monthly consumer confidence index from the Conference Board measures consumer sentiment in the current month, with the headline index a combination of the present situation and expectations for the near future. The report also includes the current and future assessments for business and employment conditions.An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.