The National Association of Home Builders reports that consumer confidence dropped in May to a low not seen since September 2017.
The Consumer Confidence Index, reported by the Conference Board, fell by 7.5% from 131.3 in May to 121.5 in June, as households are less optimistic about short-term economy and labor market amid trade tensions with China and Mexico. The Present Situation Index decreased 8.1 points from 170.7 to 162.6, the lowest reading since June 2018, and the Expectation Situation Index dropped 10.9 points from 105.0 to 94.1.
Both consumers’ assessment of current conditions and the short-term future weakened in June. The shares of respondents rating business conditions “good” fell by 1.7 percentage points to 36.7, and those claiming business conditions “bad” also declined by 0.8 percentage points to 10.9%. In addition to business optimism cooling, less favorable labor market conditions, following softer job growth last month, has drawn attention.
Advertisement
Related Stories
Economics
Mortgage Rate Declines Could Boost Home Sales Following Months of Low Activity
Encouraging economic news bumped mortgage applications up by 2.6% for the week ending May 3
Affordability
American Families Are Spending a Quarter of Their Income on Mortgage Payments
The average monthly mortgage payment is up more than 9% year-over-year
Affordability
Is Fractional Homeownership Any Kind of Solution for Housing Attainability?
The imbalance between housing supply and demand is spurring some innovative options within the real estate industry