Consumer Confidence Index slips
The Conference Board Consumer Confidence Index dipped in June to 100.4 (1985=100), down from 101.3 in May.
Meanwhile, the Present Situation Index, based on consumers’ assessment of current business and labor market conditions—increased to 141.5 (1985=100) from 140.8 last month.
However, the Expectaions Index—based on consumers’ short-term outlook for income, business, and labor market conditions—fell to 73.0 (1985=100) in June, down from 74.9 in May. The Expectations Index has been below 80 (the threshold which usually signals a recession ahead) for five consecutive months.
Confidence pulled back in June but remained within the same narrow range that’s held throughout the past two years, as strength in current labor market views continued to outweigh concerns about the future. However, if material weaknesses in the labor market appear, Confidence could weaken as the year progresses,” said Dana Peterson, chief economist of the New York-based Conference Board.
“Consumers expressed mixed feelings this month: their view of the present situation improved slightly overall, driven by an uptick in sentiment about the current labor market, but their assessment of current business conditions cooled. Meanwhile, for the second month in a row, consumers were a bit less pessimistic about future labor market conditions. However, their expectations for both future income and business conditions weakened, weighing down the overall Expectations Index."
