US Consumer confidence fell in June as the outlook for business conditions, the labor market, and earnings dropped.
The Conference Board’s index of state of mind fell to 100.4 from a downwardly revised 101.3 in May, according to statistics released Tuesday. The median estimate in a Bloomberg survey of economists was 100.
The index examines both Americans’ views of current economic circumstances and their expectations for the coming six months.
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The index of Americans’ short-term expectations for income, business, and the labor market declined to 73 from 74.9 in May. A rating below 80 may indicate a probable collapse shortly.
The opinions of consumers on current conditions increased in June to 141.5, up from 140.8 in May.
“US Consumer Confidence fell in June but stayed within the same narrow range of the past two years, as stable views on the current labor market outweighed future concerns,” said Dana Peterson, senior economist at the Conference Board.
Even though the unemployment rate increased to 4% in May, American employers created a healthy 272,000 jobs this month, indicating that businesses are optimistic enough about the economy to continue hiring despite obstinately high interest rates.
