Last Update: 28-Jul-15 10:31 ET
- The Conference Board’s Consumer Confidence Index fell to 90.9 in July from a downwardly revised 99.8 (from 101.4) in June. The Briefing.com Consensus pegged the Consumer Confidence Index at 100.0.
- That was the lowest reading in the Consumer Confidence Index since September 2014 and was well below the most pessimistic forecast (97.5) in the Briefing.com Consensus.
- The Present Conditions Index fell to 107.4 in July from 110.3 in June. The Expectations Index dropped to 79.9 from 92.8. That was the lowest expectations reading since falling to 76.5 in February 2014.
- The decline in confidence was likely the result of highly publicized economic concerns following the latest Greek and European debt crisis. In a somewhat confusing note, consumers complained that labor market conditions worsened in July despite record low initial claims readings and another move down in the unemployment rate.
- The drop in the Consumer Confidence Index is unlikely to have a material impact on consumption trends. Consumption relies on income growth, not sentiment levels. As long as the job market continues to improve, the related boost to income should pass through to higher consumption growth.
- Consumer sentiment has little influence on consumption. As long as payroll levels continue to expand, the resulting income growth should keep consumption gains steady regardless of the monthly ebbs and flows in sentiment.
|Employment ('plentiful' less 'hard to get')
|1 yr inflation expectations