The IBD/TIPP Economic Optimism Index dropped 2.7 points, or 5.6%, in July, posting a reading of 45.5 vs. 48.2 in June. The index is 1.1 points below its 12-month average of 46.6, 1.1 points above its reading of 44.4 in December 2007 when the economy entered the last recession, and 3.5 points below its all-time average of 49.0.

• The Six-Month Economic Outlook, a measure of how consumers feel about the economy's prospects in the next six months, dropped 6.9 points, or 15.8%, to 36.7. The sub-index was 32.1 when the economy entered the last recession in December 2007.

• The Personal Financial Outlook, a measure of how Americans feel about their own finances in the next six months declined 0.5 points, or 0.9%, to 57.2.

• Confidence in Federal Economic Policies, a proprietary IBD/TIPP measure of views on how government economic policies are working, lost 0.6 points, or 1.4%, to 42.7.