The Conference Board today reported that its Consumer Confidence Index, which had decreased in May, posted a slight increase in June. The index now stands at 105.7, up from 104.7 in May.
Although the expectations index edged up to 87.6 from 85.1 last month, the present situation index decreased for the second consecutive month, down to 132.7 from 134.1 in May, according to The Conference Board.
“The slight bounce-back in confidence this month was a result of the moderate improvement in consumers’ expectations,” said Lynn Franco, director of The Conference Board Consumer Research Center. “Despite the up-tick, consumers remain concerned about the short-term outlook. Furthermore, the present situation index lost ground for the second consecutive month, a signal that the economy is shifting into lower gear heading into the second half of this year.”
Consumers’ overall assessment of current conditions, while favorable, declined again in June, according to The Conference Board. Those claiming conditions are “good” declined to 26.8 percent from 28.5 percent. Those claiming conditions are “bad” eased to 14.9 percent from 15.2 percent. Labor market conditions were mixed. Consumers saying jobs are “plentiful” decreased to 28.1 percent from 29.1 percent, while those claiming jobs are “hard to get” decreased to 19.9 percent from 20.2 percent.
Consumers’ outlook for the next six months, which had deteriorated in May, improved moderately in June. Those expecting business conditions to worsen decreased to 11.8 percent from 12.9 percent. Those expecting business conditions to improve increased to 16.8 percent from 16.5 percent.
The outlook for the labor market was also somewhat more optimistic, as those expecting more jobs to become available in the next six months increased to 15.6 percent from 14.8 percent in May. Those expecting fewer jobs declined to 17 percent from 18 percent. The proportion of consumers anticipating their incomes to increase in the months ahead remained virtually unchanged at 17.1 percent.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households.