The Conference Board’s Consumer Confidence Index declined four points in June. The Index now stands at 106.4 (1985=100), down from 110.3 in May.
The Present Situation Index fell to 105.7, down from 111.2 last month. The Expectations Index fell to 106.9, down from 109.7.
“Weak labor market conditions, generally soft business conditions and waning public confidence in questionable business practices have helped erode consumer confidence,” says Lynn Franco, Director of The Conference Board’s Consumer Research Center. “Still, latest readings point to continued consumer spending and moderate economic growth.”
Consumers’ assessment of current conditions was less favorable in June. Those rating conditions as “good” dipped from 21.2% to 20.1%. Consumers rating current business conditions as “bad” rose from 18.5% to 19.1%. Those reporting jobs were “hard to get” increased from 21.8% to 23.1%. Those claiming jobs were “plentiful” decreased from 21.2% to 20.1%.
Consumers’ expectations for the next six months were also less optimistic. Those anticipating an improvement in business conditions declined from 24.9% to 23.6%. Those expecting conditions to worsen rose marginally from 6.8% to 7%.
The employment outlook for the next six months also weakened. Fewer consumers expect more jobs to become available in the next six months—20.1% in June, down from 21.2% in May. Those expecting fewer jobs to become available rose from 13.6% to 14.2%. Only 20% of the surveyed consumers expect their incomes to increase over the next six months, down from 21.1% in May.