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Consumer confidence slips
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July 28, 1998: 10:46 a.m. ET
July spending index falls to 135.4, missing forecasts; but optimism still high
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NEW YORK (CNNfn) - In a sign that the nation's consumers may be keeping closer tabs on their daily outlays, the U.S. consumer confidence index dipped below expectations in July, reversing trends from the previous month, a private survey of household spending habits showed Tuesday.
Barely a week after Federal Reserve Board Chairman Alan Greenspan warned that rising inflation -- and not an Asia-induced recession -- ultimately could unhinge the economy, the U.S. consumer confidence index eased in July to 135.4 from a revised June level of 138.2, according to the Conference Board, a private business research organization.
Economists had expected a level of 135.5.
The survey, conducted monthly for the board by NFO Research Inc. of Greenwich, Conn., is based on questionnaires given to 5,000 American households. The results are used as a gauge of broader spending trends across the consumer economy, which accounts for two-thirds of the nation's overall economic activity.
The expectations component fell to 112.3 in July, compared to a revised 116.2 reading in June. The present situation index dropped to 170.1 in July against a revised reading of 171.3 in the prior month.
The survey found growing consumer concerns about future job prospects. Nearly 12 percent said jobs will be difficult to get over the next six months, up from about 10 percent in June. About 15 percent complain jobs are "hard to get," the report said.
Among those surveyed, nearly 45 percent described current conditions as positive, up from 42 percent in June. By contrast, only 9.6 percent described them as "bad," versus 9.8 percent in the month-earlier survey, the Conference Board reported.
Prices for long-term Treasury bonds dipped slightly on the news. The 30-year benchmark Treasury lost 5/32 in price, nudging the yield up to 5.72 percent. 
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The Conference Board
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