Consumer Confidence Index Declines to Fifth-Lowest Level

June 24, 2008

This article is included in these additional categories:

Financial Services | Retail & E-Commerce

The Conference Board Consumer Confidence Index, which had declined in May, declined even further in June and now stands at 50.4 (1985=100), down from a revised 58.1 in May, the Conference Board reported.

That’s the fifth-lowest ever, as the Expectations Index declined from 47.3 in May to 41.0 – a record low. The Present Situation Index also decreased, to 64.5 from 74.2.

“Perhaps the silver lining to this otherwise dismal report is that Consumer Confidence may be nearing a bottom,” said Lynn Franco, Director of The Conference Board Consumer Research Center.

Other findings issued by the Board:

  • Consumers’ assessment of present conditions grew dimmer in June: Those claiming business conditions are “bad” increased to 32.5% from 29.7%, while those claiming business conditions are “good” declined to 11.5% from 13.0% last month.
  • 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; those claiming jobs are “plentiful” declined to 14.1% from 16.1%.
  • Consumers’ short-term expectations deteriorated further in June:
    • Those expecting business conditions to worsen over the next six months rose to 33.9% from 32.9%.
    • Those anticipating business conditions to improve decreased to 8.8% from 10.6% in May.
  • The outlook for the labor market was also more pessimistic:
    • The percentage of consumers expecting fewer jobs in the months ahead increased to 35.5% from 32.3%, while those anticipating more jobs declined to 8.0% from 9.0%.
    • The proportion of consumers expecting their incomes to increase declined to 12.3% from 14.1%.

About the data: The Consumer Confidence Survey is based on a representative sample of 5,000 US households. The monthly survey is conducted for The Conference Board by TNS. The cutoff date for June’s preliminary results was June 18.

45th Parallel Design Ad

Explore More Charts.

Pin It on Pinterest

Share This