Consumer Confidence Slightly Up in June

The Consumer Confidence Index from The Conference Board rose by 0.6 points in June to 91.2, up from a downwardly revised 90.6 in May. 

The Present Situation Index, based on consumers’ assessment of current business and labor market conditions, fell by 3.0 points to 116.4. The Expectations Index, based on consumers’ short-term outlook for income, business and labor market conditions, rose by 3.0 points to 74.4. 

“Consumer confidence inched up in June as falling oil prices in recent weeks provided some relief to consumer inflation fears,” says Dana Peterson, chief economist, The Conference Board. “Consumer appraisals of current business conditions were slightly more positive compared to last month. However, perceptions of the current labor market softened measurably as the percentage of consumers saying jobs were ‘hard to get’ rose to 22.5%, the highest level since January 2021 (22.8%). Moreover, consumers anticipate little change in the labor market six months from now. This was offset by improving expectations for business conditions and incomes.”

The Expectations Index improved in June, with two of its three components—net expectations for business and expected household income six months from now both improving. Net expectations for labor market conditions were unchanged.

Among age groups, confidence for consumers under age 35 remained the highest, but confidence for all age groups trended downward on a six-month moving average basis.

Consumers’ plans to buy big-ticket items over the next six months improved slightly, shifting from “no” to “maybe”, and the proportion saying “yes” picked up modestly. Buying plans for autos continued rising on a six-month moving average basis in June. Homebuying expectations also rose on a six-month rolling basis. Consumers planning purchases six months ahead continued to rank furniture, followed by smartphones as the most desired items, but expectations for both categories moderated further in June.