U.S. consumer confidence declined for the third consecutive month in July 2026, driven by persistent softening in business conditions and growing labor market anxieties.
Key Index Metrics (July 2026)
Consumer Confidence Index: Dropped 1.4 points to 90.8.
Present Situation Index: Fell 3.6 points to 114.9 (3rd straight monthly decline).
Expectations Index: Unchanged at 74.7 (remains in negative territory).
Critical Drivers & Trends
1. Softening Business Conditions
Consumers describing business conditions as "good" fell from 20.2% to 18.9%.
Those calling conditions "bad" rose from 16.5% to 17.8%.
Net business sentiment: Nearly flat at +1.1%.
2. Emerging Job Market Concerns
"Jobs plentiful" sentiment declined to 24.6% (down from 25.5%).
The labor market differential narrowed to +3.1 percentage points.
Write-in survey comments showed an increase in references to jobs and unemployment.
3. External & Inflation Pressures
Geopolitics: War and conflict references eased during the survey window (July 1–22), but recent reacceleration of Middle East conflicts poses upside risk for future negative sentiment.
Inflation: Consumer references to food and grocery prices increased in frequency.
Bottom Line: According to Dana M. Peterson, Chief Economist at The Conference Board, consumer confidence continues a general downward trajectory seen since late 2021. Consumers expect little near-term improvement in business or labor conditions, though overall personal income expectations remain relatively stable.