US consumer confidence retreats in June
Make us a preferred source
Make us a preferred source on Google
The news: US consumer confidence deteriorated in June as prospects about the economy, labour market and incomes weighed on households.
The numbers: Data from the Conference Board on Tuesday shows that US consumer confidence index has dropped 5.4 points to 93.0 in June, wiping out almost half of the sharp increase gained in May. Economists polled by Reuters had forecast the index increasing to 100.0.
A measure of consumer expectations for the next six months dropped 4.6 points to 69, while a gauge of present conditions fell 6.4 points to 129.1.
The context: Stephanie Guichard, senior economist, global indicators at The Conference Board said that the decline was broad-based with consumers’ assessments of current pressures and their expectations for the future both contributing to the deterioration.
“Consumers were less positive about current business conditions than May. Their appraisal of current job availability weakened for the sixth consecutive month but remained in positive territory.”
Additionally the three components of the Expectations Index, business conditions, employment prospects, and future income, all weakened.
“Consumers were more pessimistic about business conditions and job availability over the next six months, and optimism about future income prospects eroded slightly,” Guichard added.
Tariffs remained on top of consumers’ minds and were frequently associated with concerns about their negative impacts on the economy and prices, Guichard explained.
Inflation and high prices were another important concern cited by consumers, and references to geopolitics and social unrest increased slightly from previous months but remained much lower on the list of topics affecting consumers’ views.
The sources: The Conference Board, Reuters, Bloomberg
