The consumer confidence index for June fell to 98.7 from the revised since May 103.2, which was adjusted down by more than 3 points.
The decline in the overall level led to a sharp drop in consumer expectations for the next six months. The index of expectations fell from 73.7 to 66.4 – the lowest level in nearly a decade, according to the report.
“Consumers’ gloomier outlook has been driven by growing concerns about inflation, particularly rising gas and food prices,” said Lynn Franco, senior director of economic affairs at The Conference Board. “Expectations have already fallen well below 80, suggesting weaker growth in the second half of 2022, as well as a growing risk of recession by the end of the year.
However, consumer assessments of the current economic conditions have declined only slightly.
“The index for more cyclical current situations has performed much better, as the labor market still remains strong and should boost consumer spending in the short term, despite rising interest rates and higher inflation,” said Kati Bostancic. chief U.S. economist at Oxford Economics, to CNN Business by email.
Although confidence levels target pessimism and reach their lowest level since February 2021, the index is higher than it was during the pandemic and stands well above the lull in the Great Recession.
However, the gloomier assessments highlighted in The Conference Board’s index follow an equally grim report from the University of Michigan last week. The final index of consumer sentiment for June was 50, the lowest recorded level since the university began collecting this data in 1952.
This story is evolving and will be updated.
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