The consumer confidence index, which shows how U.S. consumers feel about the economy, fell again in July. Assessments of current economic and labor market conditions worsened for a third straight month, while the outlook for the economy remained at a level that still suggests a recession.
The Conference Board, a U.S. economic research organization, said on the 28th that July's consumer confidence index came in at 90.8 (1985=100). That was down 1.4 points from the revised June reading of 92.2 and below the market forecast of 92.0 compiled by Dow Jones.
The present situation index, which reflects consumers' views of current corporations activity and labor market conditions, was 114.9, down 3.6 points from the previous month, marking a third consecutive monthly decline.
The expectations index, which indicates the economic outlook for the next six months, held steady at 74.7, the same as the previous month. However, it continued to stay below 80, the threshold that suggests a potential recession.
The survey was compiled based on responses collected through the 22nd of this month.
Dana Peterson, chief economist at the Conference Board, said, "Consumers do not expect economic conditions to improve significantly over the next six months," adding, "Expectations for the labor market were somewhat less pessimistic than before, and while income prospects weakened slightly, they remained generally optimistic."