NEW YORK — The Conference Board Consumer Confidence Index, which had been on the rise for three consecutive months, declined sharply in June.
The Conference Board Consumer Confidence Index, which had been on the rise for three consecutive months, declined sharply in June.
The index now stands at 52.9, down from 62.7 in May, The Conference Board announced Tuesday.
"Consumer confidence, which had posted three consecutive monthly gains and appeared to be gaining some traction, retreated sharply in June," stated Lynn Franco, director of The Conference Board’s Consumer Research Center. "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. Until the pace of job growth picks up, consumer confidence is not likely to pick up."
Consumers’ appraisal of present-day conditions was less favorable in June. Those saying conditions are "good" decreased to 8% from 9.7%, while those saying business conditions are "bad" increased to 42.4% from 39.5%. Consumer assessment of the labor market was also less favorable versus the previous month. Those claiming jobs are "hard to get" increased to 44.8% in June from 43.9 % in May, while those saying jobs are "plentiful" decreased to 4.3% from 4.6%.
Likewise, 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% in June from 22.8% in May, and those expecting conditions will worsen rose to 14.9% from 11.9%.
Consumers, too, were much less optimistic about future job prospects. The percentage of consumers anticipating more jobs in the months ahead decreased to 16% in June from 20.2% in May, while 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%.