News

Consumers looked a bit more confident in July, with the Consumer Confidence Index rising. The Present Situation Index declined slightly, reflecting a dip in current business and labor market conditions. The Expectations Index improved to 78.2 from 72.8 but remained below 80, which signals a potential recession.

While confidence increased, it stayed within the narrow range seen over the past two years. The proportion of consumers predicting a recession increased slightly but remained below 2023 levels. Family financial assessments have worsened since early 2024. Inflation expectations held steady at 5.4%, and fewer consumers anticipated higher interest rates.

Concerns about food prices, inflation, the political situation and the labor market were prominent, with increased mentions of the upcoming elections. Home purchasing plans dropped to a 12-year low, while car buying plans remained steady, and big-ticket appliance purchases rose slightly.