The Conference Board reported on Tuesday its U.S. consumer confidence dropped
4.5 points to 98.7 in June from a downwardly revised 103.2 (from 106.4) in May.
This was the lowest reading since February 2021 (95.2).
Economists had foreseen consumer confidence to deteriorate to 100.4.
The details of the survey showed that the June decline in the headline
index mainly reflected a plunge in the expectations index (-7.3 points to 66.4).
In addition, the present situation index (-0.3 point to 147.1 this month)
decreased slightly.
Commenting on the results of the last survey, Lynn Franco, Senior
Director of Economic Indicators at The Conference Board, noted that a drop in the
expectations index to its lowest point in nearly a decade was driven by increasing
concerns about inflation. As a result, anticipation had fallen well below a
reading of 80, suggesting weaker growth in the second half of the year as well
as rising risk of recession by yearend, she added.