U.S. consumer confidence fell in July to 90.8, missing expectations and signaling pessimism about current business conditions and the labor market outlook. Concurrently, the U.S. goods trade deficit narrowed by 4.2% to $101.5 billion in June, also falling short of forecasts. Declining imports, influenced by reduced AI spending, contributed to this contraction, though trade is still anticipated to negatively impact second-quarter GDP growth.
U.S. consumer confidence experienced a dip in July, with the Conference Board's index declining to 90.8 from a revised 92.2 in June. This figure fell below economists' expectations, which had predicted an increase. Consumers conveyed pessimism regarding current business conditions and expressed a slightly weaker outlook for the labor market.
In parallel, the U.S. trade deficit in goods narrowed by 4.2% in June, reaching $101.5 billion. This contraction was less pronounced than economists had anticipated. The decrease in the deficit was partly attributed to a reduction in imports, with spending on artificial intelligence being a contributing factor. Despite this narrowing, trade is still projected to be a drag on second-quarter Gross Domestic Product (GDP) growth.
U.S. consumer confidence experienced a dip in July, with the Conference Board's index declining to 90.8 from a revised 92.2 in June. This figure fell below economists' expectations, which had predicted an increase. Consumers conveyed pessimism regarding current business conditions and expressed a slightly weaker outlook for the labor market.