June 2010 Consumer Confidence

After three consecutive monthly increases, the Conference Board’s June Consumer Confidence Index fell.  The decline was not subtle either.  It fell to 52.9 from a revised 62.7 in May.  June’s Present Situation Index fell to 25.5 from 29.8 in May.  The percent of people reporting current conditions are “good” fell to 8% from 9.7%.  At the same time those who see the existing state as “bad” increased to 42.4% from 39.5%.  The bad news does not stop there.  The Expectations Index lost its enthusiasm as well.  Only 17.2% anticipate business conditions to improve, 14.9% feel they will get worse and the rest feel they will stay the same.  Also falling was faith for future job prospects.  A mere 16% feel more jobs will be available in the next six months while 20.8% are anticipating fewer.  Finally there is the future income question of the survey.  Here we again find more pessimism as only 10.6% of the respondents felt their income levels will be higher in half-a-year from now.  June’s survey has broken a trend that we were enjoying.  We will not be too concerned with a single month’s survey, but you can bet we are waiting with bated breath for next month’s report.