Consumer confidence declined modestly in July, but Americans continue supporting the economy through steady household spending despite concerns about inflation and higher living costs. The latest Consumer Confidence Index from The Conference Board suggests families remain cautious about the future while adapting to ongoing economic challenges.
The index fell to 90.8 in July from 92.2 in June, reflecting lingering uncertainty about business conditions and household finances during the months ahead. Even so, economists note that consumer spending remains one of the strongest drivers of economic growth.
Across the San Gabriel Valley, including El Monte, South El Monte, Baldwin Park, Rosemead and Irwindale, that resilience is visible in neighborhood shopping districts, restaurants and local businesses. Families continue preparing for the new school year, dining at local establishments and making essential purchases while managing tighter household budgets.
The survey found consumers remain concerned about grocery prices, energy costs and inflation. At the same time, views of current financial conditions improved, and inflation expectations eased slightly compared with earlier this year. The findings suggest many households are adjusting spending habits instead of sharply reducing purchases.
Consumer Confidence Supports Local Businesses
The broader economy reflects that pattern. The nation’s gross domestic product expanded at an annual rate of 1.5% during the second quarter of 2026, supported by continued consumer spending and business investment. A healthy labor market has also helped many households maintain financial stability despite elevated prices.
While survey respondents expressed less optimism about business conditions during the next six months, confidence surveys measure expectations rather than current economic activity. Families may feel uncertain about the future while continuing to participate in today’s economy.
That distinction matters for small businesses throughout the San Gabriel Valley. Neighborhood restaurants, coffee shops, retailers and service providers depend on consistent community support more than national economic headlines. Everyday purchases help sustain jobs and keep local economies moving.
As families prepare for back-to-school shopping, many are focusing spending on school supplies, clothing and household necessities. Business owners have responded by offering promotions, seasonal discounts and customer appreciation events to help shoppers stretch their budgets. More information about the monthly survey is available from The Conference Board at https://www.conference-board.org, while national economic data is available from the U.S. Bureau of Economic Analysis at https://www.bea.gov.
Consumer Confidence Remains Cautious
Although inflation remains above levels many consumers would prefer, several economic indicators continue pointing toward stability. Employment has remained strong, consumer spending continues supporting economic growth and many households report feeling better about their current financial situation than earlier this year.
For residents across the San Gabriel Valley, the latest report highlights the importance of thoughtful financial planning while recognizing the role everyday purchases play in supporting local businesses. As economists continue monitoring inflation, employment and spending trends, consumer confidence will remain an important measure of how households view the economy and its direction.
