The Conference Board’s Consumer Confidence Index Drops for Third Consecutive Month in July

The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released today (7-26-22) their Consumer Confidence Index® (CCI) for July 2022. The CCI eroded further in July, marking the third consecutive monthly decline. The Index now stands at 95.7 (1985=100), down 2.7 points from a reading of 98.4 in June. Thia is its lowest level since February 2021, when the CCI reading was 95.2.

The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—fell to a reading of 141.3, down from June’s reading of 147.2.

The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—declined modestly to a reading of 65.3, down from 65.8 in June.

In a statement prepared for the release of the CCI, Lynn Franco, Senior Director of Economic Indicators at The Conference Board, said:

“Consumer confidence fell for a third consecutive month in July. The decrease was driven primarily by a decline in the Present Situation Index—a sign growth has slowed at the start of Q3. The Expectations Index held relatively steady, but remained well below a reading of 80, suggesting recession risks persist. Concerns about inflation—rising gas and food prices, in particular—continued to weigh on consumers.

As the Fed raises interest rates to rein in inflation, purchasing intentions for cars, homes, and major appliances all pulled back further in July. Looking ahead, inflation and additional rate hikes are likely to continue posing strong headwinds for consumer spending and economic growth over the next six months.”