After a back-to-back increase in ‘Consumer Confidence Index’ since last two months, Consumer Confidence stumbled in June. On June 30, a study conducted by The Conference Board reported that “The Consumer Confidence Index, which had improved considerably in May, retreated in June. The Index now stands at 49.3, down from 54.8 in May.” The Present Situation Index also declined from 29.7 in May to 24.8 in June.
Lynn Franco, Director of The Conference Board Consumer Research Center says “The decline in the Present Situation Index, caused by a less favorable assessment of business conditions and employment. Looking ahead, Expectations continue to suggest less negative conditions in the months ahead, as opposed to strong growth.”
It was also reported by the board that :Consumers’ appraisal of present-day conditions was less favorable in June. Those claiming business conditions are “good” decreased to 8.0 percent from 8.8 percent, while those saying conditions are “bad” increased to 45.6 percent from 44.5 percent. Those stating jobs are “hard to get” increased to 44.8 percent from 43.9 percent. Those saying jobs are “plentiful” decreased to 4.5 percent from 5.8 percent.”
The pessimism continues with the Consumers’ short-term outlook also dropping in June. Consumers anticipating an improvement in business conditions over the next six months decreased to 21.2 percent from 22.5 percent, while those expecting conditions will worsen increased to 20.2 percent from 18.0 percent in May.