Conference Board June index dips, expectations high

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The consumer confidence index decreased to 126.4 in June from a revised 128.8 last month, The Conference Board reported Tuesday.

The May index was originally reported as 128.0.

Economists polled by IFR Markets predicted a 128.0 reading for the index.

The present situation index dipped to 161.1 from a revised 161.2, first reported as 161.7, while the expectations index fell to 103.2 from a revised 107.2, first reported as 105.6.

“Consumer confidence declined in June after improving in May,” said Lynn Franco, director of economic indicators for The Conference Board. “Consumers’ assessment of present-day conditions was relatively unchanged, suggesting that the level of economic growth remains strong. While expectations remain high by historical standards, the modest curtailment in optimism suggests that consumers do not foresee the economy gaining much momentum in the months ahead.”

Business conditions were called “good” by 36.0% of respondents in June, off from 38.6% of respondents in May. Those saying conditions are “bad” fell to 11.7% from 12.6%.

The percentage of consumers expecting a pickup in business conditions in the next half year slid to 21.4% from 23.3%, while 9.8% said they expect conditions to worsen, up from 7.8% in the prior month.

On the jobs front, those who believe jobs are “plentiful” decreased to 40.0% from 42.1% in last month, while the number saying jobs are “hard to get” slid to 14.9% from 15.6%. The respondents who see fewer jobs becoming available in a half year, declined to 12.6% from 13.1%. Those expecting more jobs to become available grew to 20.0% from 19.7%, The Conference Board reported.

The consumer confidence survey is based on a probability design random sample by the Nielsen Company.

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