Conference Board Consumer Confidence Index. (Photo: Reuters)
The Conference Board Consumer Confidence Index edged lower in July, an indicator Americans are not reacting to the Brexit vote as predicted. The Conference Board’s consumer-confidence index fell to 97.3 in July from a downwardly revised 97.4 in June, a far smaller decline than the anti-Brexit “experts” had predicted.
Economists surveyed by The Wall Street Journal called for a reading of 96.3 in July.
“Consumer confidence held steady in July, after improving in June,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers were slightly more positive about current business and labor market conditions, suggesting the economy will continue to expand at a moderate pace. Expectations regarding business and labor market conditions, as well as personal income prospects, declined slightly as consumers remain cautiously optimistic about growth in the near-term.”
A preliminary consumer sentiment survey by the University of Michigan showed a decline in sentiment in July following the Brexit vote. Consumer spending, which accounts for roughly two-thirds of all U.S. economic output, got off to a slow start to the year even before Brexit was an issue. While it lags, Americans have begun to pick up their pace of spending in recent months against experts’ forecasts.
The Conference Board Consumer Confidence Index is conducted by Nielsen Holdings (NYSE: NLSN), a global performance management company that provides a comprehensive understanding of what consumers watch and buy.
