Mass. Consumer Confidence On Par With U.S.
Consumer confidence in Massachusetts declined sharply last month, bringing it in line with a rising level of confidence nationwide, according to data released Tuesday by Mass Insight.
Mass Insight, a Boston-based consulting and research firm, said consumer confidence among Bay State residents fell 7 points from April to July to a reading of 80 on a scale of 1 to 100. That’s the lowest point for the quarterly index since a reading of 64 in October 2011.
The index mirrors the national gauge of consumer confidence that comes from The Conference Board. In July, that group’s consumer confidence reading for the U.S. was 80, up 11 points from April, its highest level since January 2008, just after the official start of the Great Recession, when it registered an 88. The national consumer confidence gauge has risen in all but two quarters since the fourth quarter of 2011, when it measured a 41.
“It’s not surprising that confidence is down as consumers are hearing a drumbeat of concerning news with interest and mortgage rates rising, markets dropping and continued reports of a weak recovery.” said William H. Guenther, Chairman and CEO of Mass Insight.
The state and national unemployment rates are experiencing similar movements: Last month, joblessness in the Bay State rose to 7.2 percent while the national unemployment rate fell to 7.4 percent.
Mass Insight said the drop in confidence among Bay State consumers was tied chiefly to more negative expectations of future conditions, while optimism about current conditions improved slightly. Compared with future expectations in April, more consumers in July believed business conditions will be worse in six months and that there will be fewer jobs.
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