U.S. Consumer Confidence Drops in June
(MENAFN) The Conference Board reported a sharp decline in the US Consumer Confidence Index, which dropped 5.4 points to 93 in June, wiping out nearly half of May’s gains. This downturn reversed the upward trend seen the previous month, according to Tuesday’s data release.
May’s index was revised higher to 98.4 points, yet economists had anticipated June’s reading to rise to 99.4.
The Present Situation Index, which gauges how Americans view current employment and labor market conditions, fell by 6.4 points, landing at 129.1 in June. Meanwhile, the Expectations Index—measuring short-term consumer outlook on income, jobs, and labor market prospects—declined 4.6 points to 69.
Notably, this Expectations Index figure remains significantly below the critical 80-point mark, signaling that a recession is widely anticipated within the next year.
“Consumer confidence weakened in June, erasing almost half of May’s sharp gains,” said Stephanie Guichard, senior economist at the Conference Board.
Guichard highlighted that declines in consumer assessments of both the current situation and future expectations drove the drop, with consumers also expressing less optimism about prevailing business conditions compared to May.
She added, "Their appraisal of current job availability weakened for the sixth consecutive month but remained in positive territory, in line with the still-solid labor market."
The economist further explained that all three components of the Expectations Index—future income, employment prospects, and business conditions—showed deterioration.
Consumer concerns about tariffs and their impact on prices and the broader economy persisted from May into June. Additionally, inflation and rising costs were key worries voiced by consumers during the month.
"However, there were a few more mentions of easing inflation compared to last month. This is in line with a cooling in consumers’ average 12-month inflation expectations to 6.0% (down from 6.4% in May and 7% in April)," Guichard noted.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
