US Consumer Confidence Drops Despite Sales Boost

15 July 2002

Despite a rise in retail sales last month, confidence among American consumers is down, according to the monthly measure from the University of Michigan.

The university’s confidence index sank to 86.5 this month, down from 92.4 in June. July’s reading is the lowest since November, confounding analysts’ expectations of a rise.

The news overshadowed positive retail figures from the Commerce Department, which reported a 1.1% rise in sales for June – a bounce-back from May's 1.1% drop.

Driving the spending surge was the auto sector, where new incentives pushed sales up 3.4%, the biggest increase since October. Excluding this category, retail sales edged up 0.4%.

Data sourced from: multiple sources; additional content by WARC staff