NEW YORK – U.S. consumer confidence fell this month after rising in May, according to a report today by The Conference Board.
The board’s Consumer Confidence Index fell 4.6 points to 103.9 (1985 = 100) from May’s 108.5 points. The index is based on a monthly survey by TNS of 5,000 representative households nationwide.
This reading – the lowest since August, and below the 2006 average of 105.9 – surprised analysts, Bloomberg News said. A Bloomberg survey of 69 economists had a median forecast of 105 points.
“A perceived softening in present-day business and employment conditions are the major reasons behind this month’s pull-back in confidence,” said Lynn Franco, director of The Conference Board’s Consumer Research Center. “In fact, the Present Situation Index now stands at levels not seen since the final quarter of last year.
“Looking ahead, consumers remain rather subdued about short-term economic prospects. All in all, the glass remains half empty and half full.”
The share of consumers seeing current conditions as good fell to 27.4 percent from 29.0 percent in May, while those seeing conditions as bad rose to 16.4 percent from last month’s 14.6 percent. Their view of the job market also was less sunny.
Consumers’ predictions for business conditions and the labor market over the next six months were mixed, with slight increases seen in the share expecting conditions to improve and the share expecting them to worsen.
The Conference Board – a nonpartisan, nonprofit business membership and research organization whose U.S. offices are in New York City and Chicago – produces The Consumer Confidence Index and the Leading Economic Indicators for the United States and other nations, as well as a wide range of other reports. Additional information is available at www.conference-board.org.
