Increasing pessimism of Americans towards their country’s economy

According to IRNA from CNN news network, the data of this organization called “Conference Committee” showed a decrease in the consumer confidence index in July compared to last month. Accordingly, the mentioned index decreased from 98.4 in June to 95.7.

This reading is the lowest since February 2021, when consumer confidence was at 95.2.

This is the third month in a row that the index has decreased due to consumers’ concerns about the current state of business in America. According to this report, the index, which tracks assessments of current business and labor conditions, dropped from 147.2 to 141.3.

Lynn Franco, Director of Economic Indicators of the Conference Board, said in a statement that this is a sign of slowing growth in the third quarter of the year.

He noted that consumer expectations for the next six months were relatively stable, but remain at a level where risks of recession remain and inflation remains heavy.

Intentions to buy cars, homes and staples fell further in July as the central bank raises interest rates to curb inflation, Franco said. Looking ahead, inflation and further rate hikes may continue in the next six months to the detriment of consumer spending and economic growth.

The US Federal Reserve is expected to raise its key rate by another 75 basis points at the end of its policy meeting on Wednesday.

About 43 percent of respondents to a poll said they thought there was more than a 50 percent chance the U.S. would experience a recession in the next 12 months, while 13 percent said as soon as next April (9 months away). It happens.