Consumer Confidence Weakens in June

Consumer confidence, as measured by the The Conference Board’s Consumer Confidence Index, retreated in June after two months of strong gains. Respondents to a survey of 5,000 U.S. households shifted their expectations on business conditions and employment.

The Index now stands at 49.3, down from 54.8 in May. The Present Situation Index decreased to 24.8 from 29.7. The Expectations Index declined to 65.5 from 71.5 in May.

"After back-to-back months of strong gains, Consumer Confidence retreated in June,” said Lynn Franco, director of the Conference Board’s consumer research center. “The decline in the Present Situation Index, caused by a less favorable assessment of business conditions and employment, continues to imply that economic conditions, while not as weak as earlier this year, are nonetheless weak. Looking ahead, Expectations continue to suggest less negative conditions in the months ahead, as opposed to strong growth."

Among respondents to the survey, 8 percent claimed business conditions were good, down from 8.8 percent in May. Those saying conditions were bad increased from 44.5 percent to 45.6 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, according to the survey.

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.

Those anticipating more jobs in the months ahead decreased to 17.4 percent from 19.3 percent, while those anticipating fewer jobs increased to 27.3 percent from 25.6 percent. The proportion of consumers expecting an increase in their incomes declined to 9.8 percent from 10.8 percent, said The Conference Board.

Contact Thomas L. Gallagher at tgallagher@joc.com.