Consumer confidence declined to a five-week low as Americans continue to question the future state of the US economy.
The Bloomberg Consumer Comfort Index retreated to 42.4 in the period ended July 19 from 43.2. That index has plummeted in July, losing 3.9 points which it had gained in the final three weeks of June.
Gary Langer, president of Langer Research Associates LLC in New York tells Bloomberg, “These trends put consumer sentiment in an up-and-down-pattern.”
The index is still above its 41.7 average, where it has remained since 1985.
The Bloomberg index is among a group of mixed reports to suggest that American buyers are confused about the state of the American economy. Existing-home sales climbed to an eight-year high in June and retail sales unexpectedly declined. Employers are also adding workers, however, wage growth remains limited.
The study finds that consumers’ views on the current state of the economy declined to 32.2, the second-lowest reading since early December, from 33.3 the week prior.
The buying climate gauge, which measures whether or not it is a good time to buy goods and services, decreased moderately from 37.2 to 38.2
Bloomberg found that consumer confidence weakened in five of the seven major cities and consume sentiment among those making more than $100,000 was the lowest in six weeks. High wealth individuals tend to show a weakened sense of security when there is a decent amount of volatility in the stock market.
The study showed that the Midwest dropped by the most since the end of April. Consumer sentiment was also lower in the West and Northeast.
The Bloomberg scale measures consumer confidence on a scale of 0 to 100 and features a rolling four-week total.