US consumer confidence in the overall economy dropped in July 2009 to its lowest level for the year, according to the latest data from the Consumer Electronics Association (CEA) and CNET. The CEA-CNET Indexes also showed that consumers’ confidence in technology and consumer electronics (CE) declined this month.
The CEA-CNET Index of Consumer Expectations (ICE) slumped to 165.9 ending two consecutive months of positive gain. The ICE, which measures consumers’ confidence in the overall economy, is down nearly nine points from June and is at its lowest level since October 2008.
“[US] consumers faced a setback this month with the latest economy news,” says Anne Claudio, vice president of Research at CBS Interactive. “Recent unemployment figures hitting their highest level in 26 years, the rising cost of [fuel] and declines in household net worth due to the housing market are causing consumers to feel hesitant about an economic recovery in the near term.”
Consumer confidence in CE and technology also fell to its lowest level in over a year. The CEA-CNET Index of Consumer Technology Expectations (ICTE) dropped to 76.6, a decrease of nearly eight points from last month. The ICTE, which measures consumer confidence in technology and consumer electronics, is down four points from this time last year.
“Consumer expectations around tech spending mirrored the decline in consumers’ confidence in the economy,” says Claudio. “With job employment concerns top of mind for many consumers, people are being cautious with their spending and could be saving for the back-to-school and holiday seasons.”
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