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Consumer confidence in June continued to trend downward as consumers remain concerned about the economy and labor market amid ongoing uncertainty, specifically around tariffs, according to an analysis from the National Association of Home Builder’s (NAHB) Eye on Housing.
The Consumer Confidence Index, reported by the Conference Board, reports how optimistic or pessimistic consumers feel about their financial situation. The index fell from 98.4 to 93.0 in June, the second lowest level since February 2021.
The index is based on how consumers feel about their present situation and their expected situation. The Present Situation Index decreased 6.4 points to 129.1 in June, and the Expectation Situation Index dropped 4.6 points to 69.0. An Expectation Index below 80 often signals recession within a year.
Consumers’ assessment of current business conditions showed a decrease in confidence, with those claiming business conditions as “bad” rising by 1.6%. Pessimism about the short-term outlook also increased, with consumers expecting business conditions to improve falling from 19.9% to 16.7%.
Read ways to raise a consumer’s confidence in you as a retailer through providing exceptional customer service here.
