Consumer confidence sank again in June, and, given the current outlook among the public, it is likely to fall further in coming months, according to the Conference Board's Consumer Confidence indices released Tuesday.
The Board's Consumer Confidence Index, fell another 13.5% to a paltry 50.4(1985=100) in June, while its Present Situation Index decreased to 64.5 from74.2 in May and its Expectations Index declined to a new, all-time low of 41.0.
"This month's Consumer Confidence Index is the fifth lowest reading ever,"said Lynn Franco, director of the Board's Consumer Research Center."Consumers' assessment of present-day conditions continues to grow more negative and suggests the economy remains stuck in low gear. Looking ahead, consumers' economic outlook is so bleak that the Expectations Index has reached a new all-time low. Perhaps the silver lining to this otherwise dismal report is that Consumer Confidence may be nearing a bottom."
Among the components of those indices, respondents claiming business conditions were "bad" in June increased to 32.5% from 29.7%, while those claiming business conditions were "good" declined to 11.5% from 13.0% in May. Consumers' appraisal of the job market was also more pessimistic. Those saying jobs are "hard to get" increased to 30.5% from 28.3% in May, while those claiming jobs are "plentiful" declined to 14.1% from 16.1%.
Those expecting business conditions to worsen over the next six months rose to 33.% from 32.9%, while those anticipating business conditions to improve decreased to 8.8% from 10.6% in May. Consumers also are expecting fewer jobs in the months ahead, with 35.5% saying so and those anticipating more jobs declining to 8.0% from 9.0 percent. Only 12.3% expect their incomes to increase.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS.