The US Conference Board Consumer Confidence
Index, which had declined in May, dipped again in June. The Index now stands at
58.5 (1985=100), down from 61.7 in May. The Present Situation Index decreased to
37.6 from 39.3. The Expectations Index declined to 72.4 from 76.7 last month. The monthly Consumer Confidence Survey, based on
a probability-design random sample, is conducted for the Conference Board, a private new York-based research firm, by the
Nielsen Company, a global provider of information and analytics around what
consumers buy and watch. The cutoff date for June’s preliminary results was June
Lynn Franco, Director of The Conference
Board Consumer Research Center said: “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.
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’ appraisal of present conditions was
less favorable than in May. Those claiming business conditions are “good”
remained the same at 14.3%, while those claiming business conditions are
“bad” increased to 38.0% from 37.2%. Consumers’ assessment of the job market
was also less favourable.
Those stating jobs are “hard to get” increased
to 43.8% from 43.5%, while those stating jobs are “plentiful” decreased
to 5.2% from 5.7%.
Consumers’ short-term outlook, which had weakened
in May, declined further in June. The proportion of consumers expecting business
conditions to improve over the next six months declined to 16.4% from 17.2%.
However, those anticipating business conditions will worsen decreased to 14.7%
Consumers remained pessimistic about the outlook
for the job market over the next six months. Those anticipating more jobs in the
months ahead declined to 14.2% from 16.7%, while those expecting fewer jobs
remained unchanged at 20.3%. The proportion of consumers anticipating an
increase in their incomes declined to 13.9% from 14.9%.