SurveysJul 06, 2022
A Recession Is Unlikely, Says NRF EconomistSurveysAug 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 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.
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.”
More on Surveys
The Latest
Supplier BulletinJul 03, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
MajorsJul 03, 2025
Brilliant Earth Names Tennis Star Madison Keys as Its New AmbassadorThe 2025 Australian Open champion is the jewelry brand’s first athlete ambassador.
MajorsJul 03, 2025
Muse Sets Up Shop in Nordstrom’s New Jewelry HallThe West Village jewelry boutique’s new shop-in-shop is the cornerstone of Nordstrom’s revamped jewelry hall.
Brought to you by
Investing in the Next Generation of Bench JewelersThe Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.
SourcingJul 03, 2025
SRK Announces Its Natural Diamonds Are Now Carbon-NegativeThis past year, the manufacturer said it recorded below-zero emissions per carat of natural diamond.
Weekly QuizJul 02, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsJul 03, 2025
Piece of the Week: A Firework of Diamonds From YepremThe brand’s “Golden Strada” statement necklace features round, marquise, and pear diamonds that sparkle like Fourth of July fireworks.
CrimeJul 03, 2025
JSA Shares Holiday Weekend Security Tips Amid Spike in BurglariesJSA’s Scott Guginsky provided a list of nine security measures jewelers should observe while locking up for the long weekend.
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.
MajorsJul 02, 2025
Boucheron Looks to LA for First West Coast FlagshipLocated on Rodeo Drive, the store’s design was inspired by Hollywood and Los Angeles culture.
MajorsJul 02, 2025
Marco Bicego Opens Milan FlagshipThe new location continues the brand’s celebration of its 25th anniversary.
WatchesJul 02, 2025
Chrono24 Revamps Brand, Launches New CampaignThe online watch marketplace’s “Time Is Our Thing” campaign highlights the importance of time.
SourcingJul 02, 2025
Bernadette Mack Joins Gem Legacy as Executive DirectorShe will oversee strategic planning, fundraising, industry partnerships, and the launch of the Gem Legacy Campus in Tanzania.
CrimeJul 02, 2025
Pandora, Amazon Partner to Uncover Counterfeit Jewelry NetworkWorking with Amazon’s Counterfeit Crimes Unit and law enforcement, Pandora helped to shut down a large-scale counterfeit network in China.
MajorsJul 01, 2025
Cast Closes Business, Plans for RelaunchThe jewelry company has closed its three California brick-and-mortar stores, as well as its online shop, for now.
Events & AwardsJul 01, 2025
William Goldberg Diamonds, FIT Partner for Apprenticeship ProgramThe company is providing the opportunity for an FIT student to work alongside master diamond cutter Willie Lopez in its workshop.
IndependentsJul 01, 2025
Elie Hannoush, Founder of Hannoush Jewelers, Dies at 73He is remembered for his successful entrepreneurship, generosity, and dedication to his family.
MajorsJul 01, 2025
Claire’s Is Looking for a Buyer, Report SaysThe jewelry store chain has reportedly been struggling with costs related to tariffs as well as tough retail competition.
TrendsJul 01, 2025
Amanda’s Style File: Red Hot RubiesWelcome warm summer days with red hot rubies perfectly chosen as July’s birthstone.
CollectionsJun 30, 2025
State Property’s New Jewelry Tells ‘The Story of Everything’Co-founders Afzal Imram and Lin Ruiyin brought their son’s story of a cosmic egg, toadstool, and railroad to life in their new collection.
ColumnistsJun 30, 2025
The Smart Lab: Why Q3 Is the Secret Weapon For Holiday Jewelry SalesThe best time to prepare for the holiday season is right now, according to columnist Emmanuel Raheb.
Events & AwardsJun 30, 2025
AGA Names Recipient of 2025 Gemological Education ScholarshipThis year’s winner is Morgan Keefe, who is currently studying at GIA to be a gemologist.
IndependentsJun 30, 2025
Melanie Grant’s New Book Explores 200 Years of Jewelry“The Jewelry Book” comes out this September.
TechnologyJun 27, 2025
Gemist Raises $6M in Funding to Scale Jewelry Tech PlatformThe company is focused on modernizing the custom jewelry buying experience with e-commerce tools like product visualization and 3D styling.
IndependentsJun 27, 2025
David Webb Announces New Hires, PromotionsFollowing its recent acquisition, the storied brand has updated its leadership team and regional managers.
Events & AwardsJun 27, 2025
AGS, GIA Announce Beatrice Shipley Scholarship Winner AGS also named the recipient of its “Women in Leadership” scholarship.
CollectionsJun 27, 2025
Piece of the Week: Buddha Mama’s ‘Monstera’ Wrap RingThe 20-karat yellow gold and diamond wrap ring is modeled after the Monstera plants in the garden of the brand’s Miami villa.
MajorsJun 26, 2025
Why Rocksbox Is Opening Stores As Signet Jewelers DownsizesRocksbox President Allison Vigil shared the retailer’s expansion plans, and her thoughts on opening stores in malls.
