The Conference Board Consumer Confidence Index, which had been on the rise for three consecutive months, declined sharply in June and now stands at 52.9 (1985=100), down from 62.7 in May, the Conference Board reported.
The Present Situation Index decreased to 25.5 from 29.8 last month,
while The Expectations Index declined to 71.2 from 84.6 in May.
"Increasing uncertainty and apprehension about the future state of the economy and labor market, no doubt a result of the recent slowdown in job growth, are the primary reasons for the sharp reversal in confidence," said Lynn Franco, director of The Conference Board Consumer Research Center. "Until the pace of job growth picks up, consumer confidence is not likely to pick up."
Other findings:
- Consumers' appraisal of present-day conditions grew less favorable in June. Those saying conditions are "good" decreased to 8.0% from 9.7% in May; those saying business conditions are "bad" increased to 42.4% from 39.5%.
- Consumers' assessment of the labor market was also less favorable. Those claiming jobs are "hard to get" increased to 44.8% from 43.9% in May; those saying jobs are "plentiful" decreased to 4.3% from 4.6%.
- Consumers' short-term outlook, which had improved significantly last month, turned more pessimistic in June. Those anticipating an improvement in business conditions over the next six months decreased to 17.2% from 22.8% in May; those expecting conditions will worsen rose to 14.9% from 11.9%.
- Consumers were also much less optimistic about future job prospects. The percentage of consumers anticipating more jobs in the months ahead decreased to 16.0% from 20.2% in May; those anticipating fewer jobs increased to 20.8% from 17.8%. The proportion of consumers anticipating an increase in their incomes declined to 10.6% from 11.4%.
About the data: The Consumer Confidence Survey is based on a representative sample of 5,000 US households. The monthly survey is conducted for The Conference Board by TNS. The cutoff date for June's preliminary results was June 22.
