The Conference Board’s Consumer Confidence Index fell from 131.3 in May 121.5 (1985=100) in June, the lowest level since September 2017. The decline from a 15-year high was driven largely by uncertainty surrounding tariffs.
|Indicator||Prior||Revised||Consensus Forecast||Forecast Range||Result|
|Consumer Confidence||134.1||131.3||132.0||128.8 — 135.0||121.5|
|Present Situation Index||170.7||162.6|
The Present Situation Index – based on consumers’ assessment of current business and labor market conditions – fell from 170.7 to 162.6. The Expectations Index – based on consumers’ short-term outlook for income, business and labor market conditions – fell from 105.0 to 94.1.
“After three consecutive months of improvement, Consumer Confidence declined in June to its lowest level since September 2017 (Index, 120.6),” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “The decrease in the Present Situation Index was driven by a less favorable assessment of business and labor market conditions.”
Consumers’ expectations regarding the short-term outlook also retreated. The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence,” Franco added. “Although the Index remains at a high level, continued uncertainty could result in further volatility in the Index and, at some point, could even begin to diminish consumers’ confidence in the expansion.”
The monthly Consumer Confidence Survey is based on a random sample probability, and is conducted for The Conference Board by Nielsen. The cutoff date for the preliminary results was June 14.