Study manager Richard Curtin named that ” surprising and stated that questions concerning USA selection and the global economy will probably remain and could consider on consumer spending.
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Its final reading for July fell to 90.0 from 93.5 in June.
The index measuring opinions of current economic conditions showed a more modest drop to 109.0 in July from 110.8 in the previous month. Consumers were also more downbeat about the future as well.
A gauge of US consumer sentiment dropped in July – a sign that global economic uncertainty could ripple through domestic spending. The Consumer Expectations Index declined to 77.8 from 82.4 in June.
According to the Wall Street Journal, since the “Great Recession” ended seven years ago, the ecomic expansion has failed to achieve the significant growth seen in past recoveries, with the average annual growth rate during the current business cycle being 2.1%, the weakest of any expansion since at least 1949.
“The Sentiment Index was still below last month’s level mainly due to increased concerns about economic prospect among upper income households”, said survey director Richard Curtin. However, the measure of their expectations fell this month from both June and July 2015.
A separate measure of consumer confidence from the Conference Board, released Tuesday, held relatively steady in July, suggesting the Brexit-related pessimism could be short-lived. After a slow start to the year, consumers had picked up their pace of spending in the second quarter.
“Based on the strength in personal finances and low interest rates, real consumer spending is now expected to rise by 2.6% through mid-2017”, said Mr. Curtin.
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But robust consumer spending wasn’t enough to keep the economy going gangbusters.
