Surveys

Consumer Confidence Falls for Third Month in July

SurveysAug 02, 2022

Consumer Confidence Falls for Third Month in July

Rising prices and interest rate hikes are expected to weigh on consumer spending and economic growth over the next six months.

The Conference Board’s consumer confidence index fell to 95.7 in July from 98.4 in June, marking the third consecutive decline.
New York—U.S. consumer confidence fell for the third consecutive month in July, weighed down by inflation concerns.

The Conference Board’s consumer confidence index fell to 95.7 in July from 98.4 in June.

“As the Fed raises interest rates to rein in inflation, purchasing intentions for cars, homes, and major appliances all pulled back further in July,” said Lynn Franco, senior director of economic indicators at The Conference Board.

The consumer price index, which measures the average change in prices over time consumers will pay for a basket of goods and services, rose 1.3 percent month-over-month in June and 9.1 percent year-over-year, exceeding analyst estimates to mark the fastest pace for inflation since November 1981.

Franco noted the decrease in consumer confidence was driven by a decline in the Present Situation Index, which measures consumers’ outlook on current business and labor market conditions, and signals that growth has slowed at the start of the third quarter.

The Present Situation Index fell to 141.3 in July from 147.2 last month.

The percentage of consumers who said current business conditions are “good” decreased to 17 percent month-over-month from 19.5 percent, while those who said conditions were “bad” also increased, up to 24 percent, compared with 22.8 percent in June.

Consumers also had a bleak view of the labor market, with 50.1 percent of respondents saying jobs are “plentiful,” down from 51.5 percent last month.

More consumers felt jobs were “hard to get,” up to 12.3 percent from 11.6 percent in June.

 Related stories will be right here … 

The Expectations Index, which measures consumers’ short-term outlook for income, business, and labor market conditions, fell to 65.3 from 65.8.

“The Expectations Index held relatively steady, but remained well below a reading of 80, suggesting recession risks persist. Concerns about inflation—rising gas and food prices, in particular—continued to weigh on consumers,” Franco said.

As for the business outlook, fewer respondents expect business conditions to improve, down to 14 percent from 14.6 percent in June.

However, fewer expect conditions to worsen, down to 27.2 percent from 29.7 percent last month.

Consumers’ view of the short-term labor market was also mixed, with only slightly fewer respondents expecting more jobs to be available, down to 15.7 percent from 15.9 percent.

But, fewer respondents also expect there to be fewer jobs, down to 21.4 percent from 22.2 percent.

Consumers were less optimistic about short-term financial prospects, with 14.7 percent expecting incomes to increase, down from 16.1 percent last month.

More respondents expect their incomes to decrease, up to 15.7 percent from 15.3 in June.

Franco shared her prediction for the months ahead.

“Looking ahead, inflation and additional rate hikes are likely to continue posing strong headwinds for consumer spending and economic growth over the next six months.”

Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

SourcingAug 05, 2022
Rare Earth Mining Co.’s Bill Heher Dies at 72

The passionate gem lover helped bring more than 300 different varieties of stones to the gem trade.

TrendsAug 05, 2022
Piece of the Week: Storrow Jewelry’s ‘Emblem Rosa’ Charm

The brand has attracted attention for its colorful, vintage-inspired pieces.

MajorsAug 05, 2022
Former Nike Executive Joins Team at David Yurman

Marcelo Tau is the company’s new chief operations officer.

Brought to you by
The American Mined™ Collection: Ethical Sourcing That Matters

Rio Grande provides a pathway to responsibly sourced gemstones.

Policies & IssuesAug 05, 2022
Satta Matturi Joins RJC Board

The jewelry designer founded her eponymous brand in 2015 after nearly two decades in the diamond industry.

Weekly QuizAug 04, 2022
This Week’s Quiz
Test your knowledge of the latest jewelry news with this quick test.
Take the Quiz
Supplier BulletinAug 04, 2022
Unusual Jewelry Finds Eager Buyers In Online Auctions

Sponsored by HiBid

WatchesAug 04, 2022
4 Takeaways from Chrono24’s Analysis of the Luxury Watch Market

The watch seller comments on future demand, how the crypto crash impacted Rolex and Patek Philippe pricing, the supply recovery, and more.

Brought to you by
Knowledge and Skills for Today’s Hot Topics

From laboratory-grown diamonds to design to country-of-origin, GIA's Alumni Collective™ has a seminar to suite your needs.

CollectionsAug 04, 2022
The Rest of De Beers’ 2022 High Jewelry Collection Is Here

It features fives sets of jewelry.

Lab-GrownAug 04, 2022
Lab-Grown Diamond Co. Plasmability Partners with HRA Group

Through the collaboration, HRA will exclusively cut, polish, and distribute Plasmability’s lab-grown diamonds in the market.

IndependentsAug 04, 2022
TJA to Offer ‘Texas Tours’ at Upcoming Round-Up Event

They include a tour of a museum’s gem collection and demonstrations of diamond cutting and polishing.

TechnologyAug 03, 2022
Tiffany Introduces CryptoPunk NFT Pendants

The limited-edition pendants, available in digital and physical form, retail for $50,000 and are exclusive to holders of CryptoPunks NFTs.

AuctionsAug 03, 2022
Elvis and Colonel Tom Parker’s ‘Lost’ Jewelry Coming to Auction

The sale includes pieces “The King” gifted to his longtime manager, as well as jewelry Elvis owned and wore on stage.

WatchesAug 03, 2022
Breitling’s Latest Ambassador Is an NFL Star

Trevor Lawrence is the quarterback for the Jacksonville Jaguars.

SourcingAug 03, 2022
Gembridge Launches Reseller Program for Colored Stones and Jewelry

It gives trade members full access to its catalog of products so they can sell listings on their own online platforms.

IndependentsAug 03, 2022
Day’s Jewelers Announces New VP of Merchandising

Julie Collins succeeds Kathy Corey in the role.

ColumnistsAug 02, 2022
Why Passing on Lab-Grown Diamonds Might Be a Risky Bet

Retailers would be wise to embrace this growing segment of the market instead of shunning it, Peter Smith writes.

SourcingAug 02, 2022
AGTA Names John Ford as Its New CEO

He’s the owner of The Lightning Ridge Collection but will pivot to focus on his new role.

TrendsAug 02, 2022
Marvel Debuts Gem-Set Infinity Gauntlet

East Continental Gems provided more than 150 carats of gemstones for the project.

TrendsAug 01, 2022
Amanda’s Style File: Peridot That Pops

To kick off August, Amanda Gizzi is sharing jewelry featuring the month’s OG birthstone.

CrimeAug 01, 2022
Joseph DuMouchelle Sentenced to 12 Years Behind Bars in $12M Fraud

The Michigan auctioneer and appraiser also has to pay restitution totaling $25 million for other victims of his fraud scheme.

MajorsAug 01, 2022
GIA Appoints First Vice President of Sustainability Programs

Johanna Levy will oversee the environmental, social, and governance programs.

EditorsJul 29, 2022
The Jewelry Industry Remembers Castro: A Complicated, Magical Designer

Before his sudden death last week, the designer had reached new creative heights.

SourcingJul 29, 2022
De Beers Sales Rise 23% YOY in July

Despite unusually high summertime sales, the company’s CEO said the industry remains “watchful.”

MajorsJul 29, 2022
Jewelers of America Elects 4 New Directors to Board

Joseph Corey, Krystle Craycraft, Sue Hopeman, and Sherry Smith will each serve three-year terms on the board.

TrendsJul 29, 2022
Piece of the Week: Zahn-Z Jewelry’s ‘Gem Pop’ Ring

A lab-grown ruby makes the perfect nostalgic treat.

Supplier BulletinJul 28, 2022
Local Jewelry Dealers Use Online Auctions To Find Bidders Worldwide

Sponsored by HiBid

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy