United States: Consumer confidence falls in June to over one-year low
Consumer confidence fell to 98.7 in June from May’s 103.2. June’s result marked the weakest sentiment since February 2021.
The fall came on the back of a deterioration in consumers’ sentiment regarding their future situation, with consumers growing more pessimistic about the short-term outlook for businesses, the labor market and their personal financial conditions. Rising inflation and interest rates, the weaker stock market and growing media chatter of an imminent recession likely all weighed on sentiment in the month.
Lynn Franco, senior director of economic indicators at The Conference Board, said:
“Purchasing intentions for cars, homes, and major appliances held relatively steady—but intentions have cooled since the start of the year and this trend is likely to continue as the Fed aggressively raises interest rates to tame inflation. Meanwhile, vacation plans softened further as rising prices took their toll. Looking ahead over the next six months, consumer spending and economic growth are likely to continue facing strong headwinds from further inflation and rate hikes.”