Consumer confidence drops in June

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Consumer confidence declined again in June after a dip in May, according to a report from The Conference Board.

The index stands at 58.5, down from 61.7 a month earlier. The Present Situation Index decreased to 37.6 from 39.3. The Expectations Index declined to 72.4 from 76.7 last month.

“This month’s decline in consumer confidence was driven by a less favorable assessment of current conditions and continued pessimism about the short-term outlook,” said Lynn Franco, director of The Conference Board Consumer Research Center.

“Consumers rated both current business and labor market conditions less favorably than in May, and fewer consumers than last month foresee conditions improving over the next six months. Inflation fears eased considerably in June, but concerns about income prospects increased. Given the combination of uneasiness about the economic outlook and future earnings, consumers are likely to continue weighing their spending decisions quite carefully.”

Consumers who said business conditions are “good” remained at 14.3 percent in June, but those who said business conditions are “bad” increased to 38 percent from 37.2 percent.

Consumers’ assessment of the job market also was less favorable. Those who said jobs are “hard to get” increased to 43.8 percent from 43.5 percent, and those who said jobs are “plentiful” decreased to 5.2 percent from 5.7 percent.

Consumers’ short-term outlook, which had weakened in May, declined further in June. The proportion of consumers expecting business conditions to improve during the next six months declined to 16.4 percent from 17.2 percent. However, those who anticipate that business conditions will worsen decreased to 14.7 percent from 15.4 percent.

Consumers remained pessimistic about the outlook for the job market during the next six months. Those who expect more jobs to be available in the months ahead declined to 14.2 percent from 16.7 percent, and those expecting fewer jobs remained unchanged at 20.3 percent.