The Conference
Board (CB) reported on Tuesday that its U.S. consumer confidence index fell 5.4
points to 93.0 in June from an upwardly revised 98.4 (from 98.0) in May.
Economists had forecast
the consumer confidence index to increase to 100.0.
The survey's
details revealed that the present situation index (-6.4 points to 129.1 this
month) and the expectations
index (-4.6 points to 69.0) both declined this month, with the latter staying
well below the threshold of 80, which typically signals a recession ahead.
Commenting on the findings of the last survey, Stephanie
Guichard, Senior Economist, Global Indicators at The Conference Board, noted
that consumer confidence weakened in June, erasing almost half of May's sharp
gains. “The decline was broad-based across components,” she said, adding that tariffs
remained on top of consumers' minds and were frequently associated with
concerns about their negative impacts on the economy and prices. “Inflation and
high prices were another important concern cited by consumers in June,” Guichard
continued. “However, there were a few more mentions of easing inflation
compared to last month.”
Guichard also
noted that consumers' outlook on stock prices continued to recover from April's
16-month low, with 45.6% expecting stock prices to increase over the next 12
months in June, up from 37.6% two months ago. Regarding interest rates, she
said, 57% expected rates to rise, the highest share since October 2023.