June Consumer Confidence Falls Sharply Driven by Job Fears, Gulf Oil Spill
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June 30 Consumer confidence as measured by The Conference Board
monthly Consumer Confidence Index fell sharply in June, largely due to a jobs picture that shows little improvement and the regional economic impact of the Gulf of Mexico oil spill.
The Consumer Confidence Index fell to 52.9 in June, a nearly 10-point decline from May (62.7). Both the consumers’ present situation and short-term expectations declined.
Jobs remain a major concern. The percentage of consumers expecting more jobs in the months ahead dropped from 20.2% to 16%. Those expecting fewer jobs grew from 17.8% to 20.8% Only 10.6% of respondents expect their income to increase.
The June report was in sharp contrast to the previous three months, when consumer confidence had been rising and, "appeared to be gaining some traction," according to Lynn Franco, director of The Conference Board Research Center.
"Increasing uncertainty and apprehension about the future state of the economy and labor market, no double a result of the recent slowdown in job growth, are the primary reasons for the sharp reversal in confidence," Franco said. "Until the pace of job growth picks up, consumer confidence is not likely to pick up."
Read the complete news release from The Conference Board.