U.S. consumer confidence drops more than forecast in July

The Conference Board announced on Tuesday its U.S. consumer confidence fell 5.7 points to 92.6 in July from 98.3 in June.

Economists had expected consumer confidence to come in at 94.5.

June’s consumer confidence reading was revised up from originally estimated 98.1.

The survey showed that the expectations index plunged from 106.1 last month to 91.5 this month. Meanwhile, the present situation index rose from 86.7 in June to 94.2.

“Consumer Confidence declined in July following a large gain in June,” noted Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “The Present Situation Index improved, but the Expectations Index retreated. Large declines were experienced in Michigan, Florida, Texas and California, no doubt a result of the resurgence of COVID-19. Looking ahead, consumers have grown less optimistic about the short-term outlook for the economy and labor market and remain subdued about their financial prospects. Such uncertainty about the short-term future does not bode well for the recovery, nor for consumer spending.”