Consumers are still optimistic about the U.S. economy – only a little less than they were a month ago.
The Conference Board’s closely-watched Consumer Confidence Index decreased in June, following an increase in May. The Index now stands at 126.4, down from 128.8 in May.
The present situation index, a measure of how the economy is doing right now, was relatively flat, at 161.1 versus 161.2 last month. The expectations index, which looks six months ahead, declined from 107.2 last month to 103.2 this month.
“Consumer confidence declined in June after improving in May,” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers’ assessment of present-day conditions was relatively unchanged, suggesting that the level of economic growth remains strong. While expectations remain high by historical standards, the modest curtailment in optimism suggests that consumers do not foresee the economy gaining much momentum in the months ahead.”
Consumers’ appraisal of current conditions was relatively unchanged in June. The percentage stating business conditions are “good” decreased from 38.6% to 36.0%, while those saying business conditions are “bad” also decreased, from 12.6% to 11.7%.
Consumers’ assessment of the labor market was mixed. The percentage of consumers claiming jobs are “plentiful” decreased from 42.1% to 40.0%, but those claiming jobs are “hard to get” also decreased, from 15.6% to 14.9%.
The percentage of consumers anticipating business conditions will improve over the next six months decreased from 23.3% to 21.4%, while those expecting business conditions will worsen rose from 7.8% to 9.8%.
Regarding their short-term income prospects, the percentage of consumers expecting an improvement declined, from 21.4% to 18.8%, while the proportion expecting a decrease rose from 8.0% to 8.7%.
