Consumer confidence drops again in July

Consumer confidence continued its decline in July amid concerns about the sluggish job market and slowly recovering economy. 

The Conference Board, a private research group, released a report Tuesday showing the index falling to 50.4 in July, down from a revised 54.3 in June. 

Confidence figures were slightly below analysts’ expectations in the second straight month that confidence has slipped — the index dropped nearly 10 points in June after reaching a revised 62.7 in May. 

Through the spring the index showed three straight months of increases as the economy seemed to be building strength throughout several sectors. 

The lack of job creation has left consumers wary of spending and more unsure about the future of the economy. Consumer confidence isn’t likely to improve until job growth picks up.

The July employment report is due out Aug. 6 and is expected to show that employers shed jobs again. 

Consumer spending accounts for about 70 percent economic activity and is critical to a strong recovery. A reading above 90 indicates the economy is in good shape.

A boost to confidence has been hampered by disappointing housing numbers, along with other data reflecting that the recovery could be stalling out. 

Although the sales of new homes increased in June, the pace of those sales was the second slowest on record, according to a Commerce Department report on Monday. In addition, the National Association of Realtors said existing homes sales fell in June and would probably continue a downward trend after the April 30 expiration of a federal tax credit. 

More economic data is expected later this week, with second-quarter gross domestic product due out Friday. The Federal Reserve Board has predicted modest growth for the second three months of the year.