US consumer confidence fell more than expected in July, dropping to 90.8 from a revised 92.2 in June, according to data from the Conference Board.
The decline marks a sharp reversal in household sentiment just days before the Federal Reserve is set to announce its latest interest rate decision.
The weaker-than-anticipated reading suggests that American households remain wary of the economic outlook, potentially dampening near-term consumption growth.
For traders, the data point reinforces the case for monetary easing, as policymakers weigh the risk of a softening labor market against persistent inflation pressures.
This latest dip follows a broader trend of deteriorating consumer mood.
Previous Handelsavisen coverage noted that sentiment had already sunk to its lowest levels since the immediate aftermath of the pandemic, driven by concerns over gasoline prices and geopolitical tensions in the Middle East.