Consumer confidence dropped to a 16-month low in June as inflated prices for gas, groceries, and other essentials left Americans with ever-growing affordability concerns in a recovering economy post-pandemic. The share of respondents who rated business conditions as “good” dropped by 0.2 percentage points to 19.6%, while just 14.7% of respondents expected conditions to improve over the next six months.
Similarly, expectations for the labor market were less favorable in June, with 16.3% of respondents anticipating more jobs in the short-term, compared with 22% expecting “fewer jobs” in the months to come, NAHB Eye on Housing reports.
The Consumer Confidence Index, reported by the Conference Board, fell 4.5 points from 103.2 to 98.7 in June, the lowest level since February 2021. The Present Situation Index marginally declined 0.3 points from 147.4 to 147.1, while the Expectation Situation Index sharply decreased 7.3 points from 73.7 to 66.4, the lowest since March 2013.