Consumer Confidence drops sharply.July Results The Conference Board's Consumer Confidence Index Consumer Confidence Index A measure of consumer views regarding the current economic situation and consumer expectations for the future. Information for the index is compiled and released on the last Tuesday of each month by the Conference Board, an , which had declined in June, fell further in July. The Index now stands at 97.1 (1985=100), down sharply from 106.3. The Present Situation Index fell to 99.2 from 104.9, while the Expectations Index declined to 95.7 from 107.2 in June. The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by NFO NFO Info File (file type extension) NFO New Fund Offer NFO National Farmers Organization NFO Naval Flight Officer (US Navy) NFO National Family Opinion WorldGroup, a member of The Interpublic Group of Companies This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. (NYSE NYSE See: New York Stock Exchange : IPG IPG Implantable pulse generator, see there ). Consumers' assessment of the present situation was markedly less favorable in July. Those rating conditions as "bad" climbed from 19.5 percent to 22.1 percent. The proportion rating current business conditions as "good" however, increased slightly from 19.9 percent to 20.1 percent. Consumers reporting jobs were "hard to get" rose from 23.2 percent to 24.0 percent, while those claiming jobs were plentiful fell from 20.1 percent to 18.8 percent. Consumers' short-term expectations were much less optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op than in the June survey. The percentage of respondents expecting business conditions to deteriorate increased from 7.1 percent to 9.2 percent. Those anticipating an improvement in the months ahead fell from 23.7 percent to 20.9 percent. The employment outlook also slid in July. More consumers expect fewer jobs to become available in the next six months, 17.1 percent in July versus 14.3 percent in June, while fewer expect more jobs to become available, 17.3 percent in July versus 20.4 percent in June. Regarding income prospects, 19.5 percent of consumers anticipate an increase, down from 20.9 last month. The erosion in consumer confidence represents a significant deterioration in consumer attitudes. The continued decline in the value of stock market portfolios, coupled with ongoing reports of corporate scandals A corporate scandal is a scandal involving allegations of unethical behavior by people acting within or on behalf of a corporation. A corporate scandal sometimes involves accounting fraud of some sort. , have taken a toll on consumer confidence. Consumer confidence is now at its lowest level since February of this year. And while the current reading is not alarming by historical standards, a continued slide could very well jeopardize the economic recovery. Consumer Confidence 97.1 -9.2 [down] Present Situation 99.2 -5.7 [down] Expectations 95.7 -11.5 [down] |
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