Consumer confidence slips
Respondents take a more mixed view of their job and wage prospects.
July 26, 2005: 10:13 AM EDT
NEW YORK (Reuters) - U.S. consumer confidence slipped more than expected in July after improving in June, a report said Tuesday.
The Conference Board said its gauge of consumer sentiment fell to 103.2 from a revised 106.2 in June. Analysts had looked for a reading of 106.0 in July.
Confidence dipped as consumers took a more mixed view of their job and wage prospects. The proportion of those surveyed saying jobs were "hard to get" in the survey increased to 23.8 percent from 22.5 percent, but those asserting jobs were "plentiful" held steady at 22.5 percent.
The research group's present situation reading fell to 118.5 in July from 120.8 in June while its expectations index measure fell to 93.0 in July from 96.4.
Consumer spending is the backbone of the U.S. economy, accounting for two-thirds of activity, and changes in confidence are seen as a possible precursor to softer or stronger growth.
In recent years, however, the correlation between confidence and retail sales has weakened, with consumers purchasing cars and homes even as they tell surveys that things are getting worse.