Consumer Confidence Plummets in July

The Conference Board said Tuesday that its consumer confidence index declined to 76.6 in July from 83.5 in June.

The index is a prognosticator of consumer spending. If people are feeling less confident about the economy, they are less likely to spend money, which reduces the demand for trucking services.

“The rising level of unemployment and sentiment that a turnaround in labor market conditions is not around the corner have contributed to deflating consumers’ spirits this month,” said Lynn Franco, director of the board’s Consumer Research Center. “Expectations are likely to remain weak until the job market becomes more favorable.”

Economists expected the index to rise to 85, Bloomberg reported. The index was virtually unchanged in June.

The board’s index contradicts the University of Michigan, which said earlier this month that its preliminary July consumer sentiment index rose to 90.3 from 89.7 last month, the third increase in the past four months.

The Conference Board also said that the present situation index declined to 61.9 from 64.2, while the expectations index, measuring consumers' attitudes about conditions six months from now, fell to 86.4 from 96.4.

The New York-based board said the monthly index is based on a representative sample of 5,000 U.S. households.