U.S. consumer confidence takes hit in June

Americans are worried about their near-term prospects, causing consumer confidence to fall.

Consumer confidence in the U.S. declined in June as Americans expressed concern about near-term prospects.

The Conference Board reported a drop in the consumer confidence index from 101.3 in May to 100.4 in June, slightly better than analysts’ expectations.

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The big picture: The index assesses Americans’ current economic conditions and their outlook for the next six months.

  • Short-term expectations for income, business, and the job market decreased to 73 in June from 74.9 in May, with a reading below 80 potentially indicating an upcoming recession.
  • Despite this, consumers’ view of current conditions improved to 141.5 in June from 140.8 in May.
  • The labor market showed signs of strength in May, with a significant increase of 272,000 jobs added and consumer spending contributing to the growth.
  • However, job postings hit a low point in April, and the number of Americans receiving unemployment benefits increased for seven consecutive weeks.

Go deeper: While economic indicators suggest the U.S. economy is performing well historically, there are signs of growth slowing down due to high interest rates and inflation impacting consumer spending.

  • Retail sales saw a modest 0.1% increase in May, reflecting consumers’ cautious approach in light of rising prices.
  • Despite concerns, there was a slight decrease in consumer expectations of a recession within the next year in June, following an increase in the previous two months.
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