Consumer Sentiment decreased 7.8 points in July to 72.5, according to the University of Michigan Consumer Sentiment Index. July’s figure is 26.3 points below the July 2019 index. The Current Economic Conditions Index fell 4.9 points to 82.8 and the reading was 25.2 points below the July 2019 index. The Consumer Expectations Index declined 8.9 points to 65.9 and was 27.2 points lower than a year ago.
“Consumer sentiment sank further in late July due to the continued resurgence of the coronavirus. (…) The federal relief programs have prevented more substantial declines in consumer finances, partially shielding consumers from the unprecedented surge in job losses, reduced work hours, and salary cuts. The lapse of the special jobless benefits will directly hurt the most vulnerable and spread even further by missed rent, mortgage, and other debt payments. Easing off the added jobless benefit will naturally result with job growth as well as provide for a delayed and gradual reduction in added benefits so that its eventual absence is much less disruptive.” said Richard Curtin, chief economist of UM Surveys of Consumers.
Read the University of Michigan Surveys of Consumers release.