Decrease in Consumer Confidence Observed in June

After three months of increase of the Consumer Confidence Index, it fell from 62.7 in May to 52.9 in June. The Expectations Index decreased from 84.6 to 71.2 while the Present Situation Index fell from 29.8 to 25.5.

According to The Conference Board Consumer Research Center director, Lynn Franco, uncertainty about the economy’s state as well as the labor market is the reason for the decrease in confidence. She also adds that if job growth doesn’t increase, confidence may not increase as well.

Consumers who expect increase in job prospects decreased from 20.2% to 16% while those who expect income increase fell from 11.4% to 10.6%. Those who expect improvement of business conditions in the coming 6 months declined from 22.8% to 17.2% and those who expect it to be in worse condition rose from 11.9% to 14.9%.

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