Americans’ views on the economy dimmed in July, hitting their lowest level in nearly five years, as fresh outbreaks of the coronavirus throughout the South and West, coupled with persistently high unemployment, cast doubt on a quick recovery from the COVID-induced recession, according to the latest reading of the Investor’s Business Daily/TIPP Economic Optimism Index, a leading indicator for the health of consumer spending and the economy. The drop in consumer confidence was precipitated by a diminished outlook for the U.S. economy in the near term, as the Six-Month Economic Outlook component measure hit its lowest point since September 2015. However, consumers’ assessment of their financial situations revisited optimistic territory in July, after turning pessimistic for the first time in more than six years last month, amid a strong rebound in hiring.
