The Conference Board Consumer Confidence Index which had been on the rise for three consecutive months, declined sharply in June as Americans became concerned over the outlook for jobs and incomes. The New York-based research group said its Index dropped to 52.9 in June from 62.7 in May. It was the lowest level since March, when the index stood at 52.3.
“Consumer confidence, which had posted three consecutive monthly gains and appeared to be gaining some traction, retreated sharply in June”, said Lynn Franco, Director of The Conference Board Consumer Research Center. ” Increasing uncertainty and apprehension about the future state of the economy and labor market, no doubt a result of the recent slowdown in job growth, are the primary reasons for the sharp reversal in confidence. Until the pace of job growth picks up, consumer confidence is not likely to pick up.”