CARY, N.C. -

It’s a good thing that dealerships and finance companies are known as a resilient bunch, because the COVID-19-clouded atmosphere they’re facing to retail vehicles and keep customers current on their contracts doesn’t appear to be improving quickly, no matter how much liquidity the Federal Reserve makes available.

And that atmosphere has Congressional squabbling fog in the mix, too, as lawmakers debate over what economic stimulus should be utilized next.

This week, officials from the Conference Board said their Consumer Confidence Index decreased in July after rising a month earlier, declining from 98.3 to 92.6.

The organization’s Present Situation Index — based on consumers’ assessment of current business and labor market conditions — improved from 86.7 to 94.2.

However, its Expectations Index — based on consumers’ short-term outlook for income, business and labor market conditions — decreased from 106.1 in June to 91.5 this month.

“Consumer confidence declined in July following a large gain in June,” said Lynn Franco, senior director of economic indicators at the Conference Board. “The Present Situation Index improved, but the Expectations Index retreated. Large declines were experienced in Michigan, Florida, Texas and California, no doubt a result of the resurgence of COVID-19.

“Looking ahead, consumers have grown less optimistic about the short-term outlook for the economy and labor market and remain subdued about their financial prospects. Such uncertainty about the short-term future does not bode well for the recovery, nor for consumer spending,” Franco continued in a news release.

Meanwhile, the Federal Open Market Committee (FOMC) at the Federal Reserve released its regularly scheduled policy update on Wednesday. All nine FOMC members voted unanimously to maintain the target range for the federal funds rate at 0 to 0.25%.

Committee members explained that they expect to maintain this target range until they are confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.

That juncture might be a bit down the road — pun intended.

“The coronavirus outbreak is causing tremendous human and economic hardship across the United States and around the world,” the Fed said in a statement. “Following sharp declines, economic activity and employment have picked up somewhat in recent months but remain well below their levels at the beginning of the year. Weaker demand and significantly lower oil prices are holding down consumer price inflation.

“Overall financial conditions have improved in recent months, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses,” the Fed continued.

“The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term,” policymakers went on to say.

Turning back to information from the Conference Board, its latest consumer survey conducted by Nielsen that concluded on July 17 found that consumers’ assessment of present-day conditions did, in fact, improve in July.

Officials found the percentage of consumers claiming business conditions are “good” was relatively unchanged at 17.3%, while those claiming business conditions are “bad” decreased from 42.5% to 39.1%.

The Conference Board also noted consumers’ appraisal of the job market was more favorable. The percentage of consumers saying jobs are “plentiful” increased from 20.5% to 21.3%, while those claiming jobs are “hard to get” decreased from 23.3% to 20.0%.

Consumers, however, are less optimistic about the short-term outlook, according to that same survey.

The percentage of consumers expecting business conditions will improve over the next six months declined from 42.4% to 31.6%, while those expecting business conditions will worsen increased from 15.2% to 19.3%.

The Conference Board went on to note that consumers’ outlook for the labor market was also less favorable.

The proportion expecting more jobs in the months ahead declined from 38.4% to 30.6%, while those anticipating fewer jobs in the months ahead increased from 14.4% to 20.3%.

Regarding their short-term income prospects, officials said the percentage of consumers expecting an increase was relatively unchanged at 15.1%, while the proportion expecting a decrease rose from 14.1% to 15.0%.

All of this consumer survey information as well as the latest Federal Reserve action arrived as Congress wrestles with what aid and stimulus to give next in an effort to keep the economy in recovery mode.

Among the major contention points is the additional $600 weekly unemployment insurance benefits some of the more than 30 million out-of-work individuals have been receiving for more than three months. The amount is on top of what each state provides.

But those more robust unemployment benefits came through legislation set to expire this month.

Senate Majority Leader Mitch McConnell said on the chamber floor earlier this week: “The Congressional Budget Office says that five out of six recipients of this aid — 83% — receive more to stay home than they made on the job. That’s not fair and it’s not workable in a re-opening job market.

“We’ve already heard from small-business owners who have had trouble re-opening because it would be financially irrational for their employees to come back,” McConnell continued. “This is why Republicans propose to continue providing federal aid, continue providing hundreds of dollars per week, but do it in a more targeted way, while providing even more incentives for re-hiring.”

Speaker of the House Nancy Pelosi retorted this week in a news release saying that a Senate proposal McConnell referenced “destroys families’ financial security” and “endangers our children and enriches corporations at the expense of working families.”

Pelosi then added, “The attitude from Republicans has been one of condescension and disrespect for America’s working families. We are always optimistic that we can find common ground.  However, Leader McConnell presented a liability-on-steroids proposal.”

Perhaps Curt Long summarized the developments of the week the best when it comes to dealerships and finance companies. Long is chief economist and vice president of research at the National Association of Federally-Insured Credit Unions (NAFCU).

“The early days of the pandemic saw the Fed act and speak forcefully to calm financial markets and restore confidence to investors, to great effect.” Long said in a statement. “But lately it is all too clear that while the Fed may have more ammunition to support markets, the problems in the real economy are mostly a matter for Congress.

“NAFCU continues to believe that a sustained recovery will prove elusive until a vaccine is available,” Long concluded.