Consumer Confidence Declines

The Consumer Confidence Index fell to 49.3 (1985+100) in June compared with 54.8 in May, according to a report released yesterday by The Confidence Board. The Present Situation Index decreased to 24.8 compared with 29.7 in May and the Expectations Index declined to 65.5 in June compared with 71.5 in the previous month.

“After back-to-back months of strong gains, Consumer Confidence retreated in June,” said Lynn Franco, director of The Confidence Board 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.”

Consumers’ appraisal of present-day conditions was less favorable in June, with those claiming business conditions are “good” decreasing to 8 percent in June compared with 8.8 percent a month earlier, while those saying conditions are “bad” increasing to 45.6 percent compared with 44.5 percent in May. Consumers anticipating an improvement in business conditions over the next six months decreased to 21.2 percent in June compared with 22.5 percent the previous month, while those expecting conditions will worsen increased to 20.2 percent from 18 percent in May, according to the report.

Source: C.A.R.