Consumer confidence fell sharply in June after rising for three consecutive months, The Conference Board Inc., a New York-based research organization, reported June 29.
The June index stands at 52.9, down 9.8 points from 62.7 in May. The baseline for the index, set in 1985, is 100.
United Kingdom-based TNS conducts the monthly Consumer Confidence survey of 5,000 randomly selected U.S. households. The cutoff date for this month’s survey was June 22.
“Consumer confidence, which had posted three consecutive monthly gains and seemed to be gaining some traction, retreated sharply in June,” Lynn Franco, director of The Conference Board Consumer Research Center, said in a statement. “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.”
The survey describes how consumers feel about both current conditions in the Present Situations Index and short-term conditions, looking roughly six months ahead, in the Expectations Index.
Survey respondents claiming business conditions were “good” decreased to 8% from 9.7% in May, while those saying business conditions are “bad” increased to 42.4% from 39.5%.
Consumers claiming jobs are “hard to get” increased to 44.8% from 43.9% in June, while those saying jobs are “plentiful” decreased to 4.3% from 4.6%.
Respondents’ short-term outlooks turned more pessimistic, as those anticipating an improvement in business conditions over the next six months decreased to 17.2% from 22.8% last month, while those expecting business conditions to worsen rose to 14.9% from 11.9%.