WASHINGTON, July 28 (Xinhua) -- The U.S. Consumer Confidence Index dropped 1.4 points in July from the month prior, according to data released Tuesday by the Conference Board.
"Consumer confidence moderated slightly in July, continuing a general downward sloping trajectory since late 2021," said Dana M. Peterson, chief economist at the Conference Board. "Looking ahead, consumers anticipate little improvement in business conditions over the next six months."
The decline comes as many Americans are feeling a sense of dread over the economy.
That's mostly because inflation is significantly higher than in 2019. The cost of food and rent has increased considerably, and the cost of owning a home -- when high interest rates are factored in -- has hit the roof.
According to the report, consumer confidence among those under age 35 remained the highest, while confidence among those aged 35-54 showed the greatest improvement.
By income, confidence was mixed, but generally higher-income groups were more optimistic, the report found.
By generation, confidence for Gen Z and Millennials remained the highest, while confidence fell the most for the Silent Generation -- people born from 1928 to 1945 -- on a six-month moving average basis, according to the report.
By political affiliation, confidence among Independents and Democrats softened while Republicans were somewhat more positive, the report found.
Consumers' write-in responses on factors affecting the economy continued to be mostly pessimistic in July, the report said.
References to prices and oil and gas eased in frequency but remain elevated. Comments about food and grocery prices increased.
Mentions of war, geopolitics and conflict eased during the sample period. However, as the Iran war has recently accelerated, there could be an increase in these mentions in the revised July data, the report said.
Most consumers -- 61.3 percent, unchanged from June -- still expected higher interest rates over the next 12 months, according to the report.
Consumers' net views of their family's current financial situation improved after deteriorating for three consecutive months, the report found.
People's views of their family's future financial situation were healthy but slightly less optimistic in July compared to June, according to the report.
The share of consumers who said a U.S. recession over the next 12 months is "somewhat likely" continued to rise, but overall recession expectations remain low, with the share saying recession is "very likely" declining, the report found.
Some experts said tariff relief and an end to the war in Iran could bring down prices, although others argue that the major driver of inflation -- which kicked in during 2021 -- was Washington's profligate spending.
That, many experts said, makes inflation difficult to reverse.
Gary Hufbauer, a nonresident senior fellow at the Peterson Institute for International Economics, told Xinhua: "In reality, apart from tariff relief, there's only one thing the president can do (to lower prices). That one thing is to throw in the towel on the Iran war."
Meanwhile, angst over the economy could flip the Senate, House or both in November's midterm elections, experts said.
Brookings Institution Senior Fellow Darrell West told Xinhua that voters are in a "sour mood" over rising costs, adding that U.S. President Donald Trump's lack of popularity is a "major challenge" for the GOP.
Other experts echoed those thoughts.
Christopher Galdieri, a political science professor at Saint Anselm College in the northeastern state of New Hampshire, told Xinhua that it's "very likely" the House flips, although the Senate is more difficult to predict. Enditem
京公网安备 11010802027341号