A report released by the Conference Board on Tuesday showed consumer confidence in the U.S. deteriorated by more than expected in the month of July.
The Conference Board said its consumer confidence index slid to 95.7 in July from a downwardly revised 98.4 in June. Economists had expected the index to drop to 96.8 from the 98.7 originally reported for the previous month.
“Consumer confidence fell for a third consecutive month in July,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “Concerns about inflation—rising gas and food prices, in particular—continued to weigh on consumers.”
She added, “As the Fed raises interest rates to rein in inflation, purchasing intentions for cars, homes, and major appliances all pulled back further in July.”
The bigger than expected decrease by the consumer confidence index came as the present situation index slumped to 141.3 in July from 147.2 in June.
The report showed a much more modest decline by the expectations index, which edged down to 65.3 in July from 65.8 in June.
“Looking ahead, inflation and additional rate hikes are likely to continue posing strong headwinds for consumer spending and economic growth over the next six months,” Franco said.
On Friday, the University of Michigan is scheduled to release its revised reading on consumer sentiment in the month of July.
The consumer sentiment index for July is expected to be unrevised from the preliminary reading of 51.1, which was up from a record low 50.0 in June.
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