Consumer Confidence Retreats in July

Consumer confidence fell in July, the New York-based Conference Board said.

The group’s monthly index fell to 46.6 from a revised 49.3 reading in June. A record low of 25.3 was reached in February.

The change reflects a surge in unemployment, which threatens to undermine household spending, Bloomberg reported. Unemployment is projected to rise to 10% by early 2010.

Economists had forecast that the reading would fall to 49, Bloomberg said.

The consumer confidence index is a predictor of consumer spending. When people are feeling less confident about the economy, they are less likely to spend money, which decreases demand for trucking services.