Thursday, July 1, 2010

Consumer Confidence Index Declines in June

The Conference Board’s Consumer Confidence Index declined to 52.9 in June (1985=100) compared with 62.7 in May, the Conference Board reported yesterday. The Present Situation Index decreased to 25.5 in June from 29.8 in May, and the Expectations Index declined to 71.2 from 84.6 last month, according to the report.

“Consumer confidence, which had posted three consecutive monthly gains and appeared to be gaining some traction, retreated sharply in June,” said Lynn Franco, director of The Conference Board 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' assessment of current conditions was less favorable in June, with those claiming business conditions are "good" decreasing to 8 percent in June compared with 9.7 percent in May, while those claiming conditions are "bad" increasing to 42.4 percent in June compared with 39.5 percent in May. Consumers' appraisal of the job market also was less favorable, according to the report.

Source: The Conference Board

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