Consumer confidence declined for the third straight month in June, according to a survey released Tuesday.
The Consumer Confidence Survey “details consumer attitudes, buying intentions, vacation plans, and consumer expectations for inflation, stock prices, and interest rates,” according to The Conference Board, a non-profit business research group.
The survey, conducted by the technology company Toluna and based on an online sample, currently stands at 95.7, down 2.7 points from 98.4 in June. (RELATED: Consumer Expectations For The Economy Hit Lowest Point In A Decade)
The Present Situations Index, used to measure consumers’ appraisal of current economic conditions, fell to 141.3, down from 147.2 last month. The Expectations Index, which measures consumers’ short term outlook for economic conditions, lowered from 65.3 from 65.8.
July consumer confidence fell more than expected while expectations for the future sank to a 9-year low. June new homes sales crashed far more than expected, falling for 5 out of the last 6 months, and May’s number was revised sharply lower. The economy is clearly in #recession.
— Peter Schiff (@PeterSchiff) July 26, 2022
“As the Fed raises interest rates to rein in inflation, purchasing intentions for cars, homes, and major appliances all pulled back further in July,” Lynn Franco, Senior Director of Economic Indicators at The Conference Board, said. “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.”
White House Economic Advisor Brian Deese said in a press conference Tuesday afternoon that the cause of the dip in consumer confidence was, “a divergence in the economy right now between sentiment and spending behavior.”