U.S. Consumer Sentiment Edged Down in July, Conference Board Says

By Jessica Coacci

Consumer confidence declined in July as consumers' assessment of current business and labor-market conditions softened for a third straight month, a monthly survey from The Conference Board said.

The research group said Tuesday its consumer confidence index fell to 90.8 in July from an upwardly revised 92.2 in June. Economists polled by The Wall Street Journal had expected a higher reading of 92.0.

Consumers' assessment of current business and labor-market conditions fell by 3.6 points to 114.9. Meanwhile, the expectations index, based on short-term outlook for income, business and labor market conditions, remained unchanged at 74.7.

The Conference Board said perceptions of employment conditions declined, with the labor market differential - the share of consumers saying jobs are "plentiful" minus the share saying jobs are "hard to get" - ticking down to 3.1%. Economists watch this labor-market differential to gauge how tight labor conditions are for households.

A separate reading of sentiment from the University of Michigan earlier this month reported consumer sentiment improved as gasoline prices cooled. However, some economists have noted re-escalation of fighting in the Middle East could stall that momentum in the weeks ahead if gasoline prices climb again.

Mentions of war, geopolitics and conflict eased during the sample period. However, as the fighting has re-accelerated quite recently there could be an increase in these mentions in the revised data for July, The Conference Board said.

On Wednesday, The Federal Reserve will release its July decision on interest rates. With rising expectations that rates will stay higher for longer, borrowing costs are likely to stay elevated as the benchmark rate directly affects short-term borrowing within credit cards and auto loans.

Write to Jessica Coacci at jessica.coacci@wsj.com

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July 28, 2026 10:14 ET (14:14 GMT)