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US Consumer Confidence Falls To 90.9 In July

July 28, 2015

Washington (July 28)  Weaker equity markets and concerns that the global economy is faltering is creating some pessimism among U.S. Consumers, according to the latest data from the U.S. Conference Board.

Tuesday, the board said its monthly Consumer Confidence Index fell to 90.9, from June’s revised reading of 99.9; the initial report pegged the index at 101.4. According to consensus forecasts, economists were expecting a small decline to 100.1.

Looking at the components of the report, the headline number was dragged down by a sharp fall in the expectations index, which dropped to 79.9 from last month’s previous reading of 92.8. The present situation index fell to 107.4 from June’s reading of 110.30.

“A less optimistic outlook for the labor market, and perhaps the uncertainty and volatility in financial markets prompted by the situation in Greece and China, appears to have shaken consumers’ confidence,” said Lynn Franco, director of economic indicators at The Conference Board, in the report.

However, Franco added the index remains at levels associated with an expanding economy.

Looking at consumer’s outlook of the labor market, survey participants who say that jobs are “plentiful” fell to 20.7% from June’s level of 21.3%. At the same time, those who say jobs are “hard to get” increased to 26.7% from the previous level of 26.1%.

Lower confidence among consumers could have a negative effect on economic growth in the third quarter. Last month, when consumer confidence rose to its highest level since January, retail sales increased 1.2%.

Economists have been expecting that strong consumer consumption will be the biggest driver for growth this year as the manufacturing sector continues to lag because of a stronger U.S. dollar.

Source: KitcoNews

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