Consumer confidence edged lower in July, with the Conference Board Consumer Confidence Index decreasing 1.4 points to 90.8 from an upwardly revised 92.2 in June. This is slightly below market expectations of 92.4. Consumers’ assessment of current business and labor market conditions weakened, as the present situation index fell 3.6 points to 114.9. Meanwhile, expectations for income, business and labor market conditions over the next six months were essentially unchanged as the Expectations Index remained at 74.7.
The ABA’s Office of the Chief Economist believes consumer confidence edged lower in July as higher oil prices renewed inflation concerns and worsening perceptions of the labor market weighed on sentiment. For banks, deteriorating confidence could mean weaker demand for consumer credit in the second half of the year.
