Consumer confidence drops again in July

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.