Tuesday, June 29, 2010

Consumer Confidence Plummets in June

by Calculated Risk on 6/29/2010 10:03:00 AM

From the Conference Board: Consumer Confidence Index® Drops Sharply

The Conference Board Consumer Confidence Index® which had been on the rise for three consecutive months, declined sharply in June. The Index now stands at 52.9 (1985=100), down from 62.7 in May.
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Says Lynn Franco, Director of The Conference Board Consumer Research Center: “Consumer confidence, which had posted three consecutive monthly gains and appeared to be gaining some traction, retreated sharply in June. 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.”
I rarely mention consumer confidence because it is mostly a coincident indicator, but this is quite a miss (expectations were for about the same level as May).