Consumer confidence drops to fifth-lowest level
Expectations Index at lowest point ever
By Furniture Today Staff -- Furniture Today, June 23, 2008
NEW YORK — Consumer confidence took another dive in June, falling to 50.4 from 58.1 in May, according to The Conference Board.
The new reading was the fifth lowest in the 41-year history of the index, and the Expectations Index was the lowest ever, the research organization said.
A representative sample of 5,000 households was surveyed for the index, with the cutoff date of June 18. The June reading was down from 58.1 in May (1985=100), with the Present Situation Index falling to 64.5 from 74.2 and the Expectations Index declining to 41.0 from 47.3 in May.
“Consumers’ assessment of present-day conditions continues to grow more negative and suggests the economy remains stuck in low gear,” said Lynn Franco, director of The Conference Board Consumer Research Center. “Looking ahead, consumers’ economic outlook is so bleak that the Expectations Index has reached a new all-time low. Perhaps the silver lining to this otherwise dismal report is that Consumer Confidence may be nearing a bottom.”
Consumers’ assessment of present conditions grew dimmer in June. Those claiming business conditions are “bad” increased to 32.5% from 29.7%, while those claiming business conditions are “good” declined to 11.5% from 13% last month.
Consumers’ appraisal of the job market was also more pessimistic. Those saying jobs are “hard to get” increased to 30.5% from 28.3% in May, while those claiming jobs are “plentiful” declined to 14.1% from 16.1%.
Consumers’ short-term expectations also deteriorated further in June. Those expecting business conditions to worsen over the next six months rose to 33.9% from 32.9%, while those anticipating business conditions to improve decreased to 8.8% from 10.6% in May.
The outlook for the labor market was also more pessimistic. The percent of consumers expecting fewer jobs in the months ahead increased to 35.5% from 32.3%, while those anticipating more jobs declined to 8% from 9%. The proportion of consumers expecting their incomes to increase declined to 12.3% from 14.1%.
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