Consumer Confidence Falls in June
June 30, 2010,
NEW YORK--The Consumer Confidence Index registered 52.9 this month, down nearly 10 points from its May level of 62.7.
The June level marked the end of three consecutive months in which the index rose. A key factor in the falloff was a 13.4-point plummet in the Expectations Index to 71.2. The Present Situations Index, the other component of the overall index, decreased 4.3 points to 25.5.
The consumers surveyed for the index gave grim responses when queried about present and future business conditions and the job market both now and down the road. The percentages of those who said conditions in the business sector and the labor market were "bad" both increased, while the ratio of those rating business conditions and the jobs sector as "good" both fell. The percentages of consumers with a pessimistic view of current and future business conditions and job prospects also rose, while those who saw a rosier climate for both declined.
"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," said Lynn Franco, director of The Conference Board's Consumer Research Center. "Until the pace of job growth picks up, consumer confidence is not likely to pick up."