Key Takeaways:
U.S. consumer confidence fell more than expected in July as rising gasoline prices and heightened geopolitical tensions weighed on household sentiment.
The Conference Board's consumer confidence index slid to 90.8 in July from an upwardly revised 92.2 in June, missing the Wall Street Journal economist consensus of 92.0, the research group said Tuesday.
"Consumers grew increasingly anxious about the economic outlook as gas prices resumed their upward trajectory," Dana Peterson, chief economist at the Conference Board, said in a statement.
The present-situation index — measuring views of current business and labor conditions — fell 3.6 points to 114.9, marking its third straight monthly decline. Gasoline prices, which had eased to around $3.70 a gallon from more than $4.50 in late April and early May, reversed course in July as the U.S. and Iran stepped up their fighting, according to the Conference Board.
The decline signals potential headwinds for consumer spending, which accounts for roughly two-thirds of U.S. economic activity. With the Federal Reserve's next policy meeting scheduled for September, the data adds to evidence that elevated living costs continue to squeeze household budgets.
The July reading extends a pattern of weakening sentiment that began in the spring. Consumer attitudes had improved modestly in June as gas prices came down from their spring peak, but anxiety increased in July alongside the renewed climb at the pump, the Conference Board said.
This article is for informational purposes only and does not constitute investment advice.
