Concerns about the price of food and groceries contributed to a decline in consumer confidence in July, according to The Conference Board.
The organization’s Consumer Confidence Index decreased by 1.4 points to 90.8 this month, down from an upwardly revised 92.2 in June, according to a Tuesday (July 28) press release.
The Present Situation Index, which measures consumers’ assessment of current business and labor market conditions, fell by 3.6 points to 114.9. The Expectations Index, which gauges consumers’ short-term outlook for income, business and labor market conditions, remained unchanged at 74.7, according to the release.
Among consumers’ write-in responses on factors affecting the economy, there was an increase in comments about food and grocery prices as well as a slight pickup in references to jobs and employment. References to prices and oil and gas eased in frequency compared to June, though they remained elevated, and mentions of war, geopolitics and conflict also eased, the release said.
The survey period for these preliminary results was July 1-22, per the release.
“The Present Situation Index was less positive for a third consecutive month while the Expectations Index remained in negative territory,” The Conference Board Chief Economist Dana M Peterson said in the release.
“Consumer appraisals of current business conditions and, to a lesser extent, perceptions of the current labor market both softened,” Peterson said. “Looking ahead, consumers anticipate little improvement in business conditions over the next six months, but expectations for the labor market were slightly less negative. Expectations for household incomes moderated but remain optimistic overall.”
The University of Michigan’s Surveys of Consumers found that consumer sentiment improved by 10% in early July, though it noted that the interviews for its preliminary results spanned June 23 to July 13 and that 70% of the interviews were completed before gas prices rose again when the United States resumed strikes against Iran.
The Index of Consumer Sentiment was gauged at 54,4, the highest reading since February, thanks to easing prices at the pump.
The July edition of the PYMNTS Consumer Expectations Index, “The Confidence Divide: Why Americans Trust the Economy More Than Their Paychecks,” found that consumer confidence rose to 55.6 in July, driven by a monthly 4.1-point jump in household perceptions of the U.S. macroeconomic and buying climate.
