US consumers temper their optimism in July, Conference Board says

Consumer sentiment in the States ebbed a bit more than expected in July as Americans tempered their short-term expectations.

The Conference Board's US consumer sentiment index retreated from a reading of 98.3 for June to 92.6.

A gauge linked to views on the current economic situation, including for business and the jobs market, increased from 86.7 to 94.2, but that tracking short-term outlook for income, business, and conditions in the labour market declined from 106.1 to 91.5.

Commenting on the fall in the expectations sub-index, Conference Board director, Lynn Franco, said: "Large declines were experienced in Michigan, Florida, Texas and California, no doubt a result of the resurgence of COVID-19.

"Looking ahead, consumers have grown less optimistic about the short-term outlook for the economy and labor market and remain subdued about their financial prospects. Such uncertainty about the short-term future does not bode well for the recovery, nor for consumer spending."

The biggest changes were seen in the proportion of consumers expecting improved business conditions over the subsequent six months, which fell from 42.4% to 31.6%, while the proportion more jobs in the months ahead fell from 38.4% to 30.6%.

Consumers expectations for their personal incomes on the other hand did not see big changes.

The cut-off date for the survey was 17 July.