"Consumer confidence faded further in July as consumers continue to grow increasingly more pessimistic about the short-term outlook," said Lynn Franco, director of The Conference Board consumer research center. "Concerns about business conditions and the labor market are casting a dark cloud over consumers that is not likely to lift until the job market improves."

The index's survey found that 43.6% said conditions are "bad," up from 41.0% in the June survey. Also, consumers saying jobs are "hard to get" rose to 45.8% in July from 43.5% in June.