The Conference Board's Consumer Confidence Index, which had risen sharply in May, dropped in June. The Index now stands at 138.8 (1985=100), down from 144.7 in May. The Present Situation Index declined from 183.6 to 180.2 in June. The Expectations Index posted an even sharper drop, from 118.7 to 111.2 in June.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by NFO Research, Inc., an NFO Worldwide Company and member of the Interpublic Group of Companies (NYSE: IPG).
In June, consumers' appraisal of ongoing conditions was not as positive as in May. The percentage of respondents that felt business conditions were "good" slipped to 43.3 percent from 45.0 percent, while those rating conditions as "bad" increased to 9.3 percent from 7.2 percent. Consumers claiming jobs were "hard to get" edged up to 11.3 percent from 11.0 percent in May.
Consumers' short-term outlook in June was much less optimistic than in May. The percentage of respondents expecting an improvement in business conditions over the next six months fell modestly to 18.4 percent from...