Says Lynn Franco, Director of The Conference Board Consumer Research Center: "A perceived softening in present-day business and employment conditions are the major reasons behind this month's pull-back in confidence. In fact, the Present Situation Index now stands at levels not seen since the final quarter of last year. Looking ahead, consumers remain rather subdued about short-term economic prospects. All in all, the glass remains half empty and half full."
Consumers' appraisal of present-day conditions was less upbeat in June. Those claiming conditions are "good" declined to 27.4 percent from 29.0 percent. Those saying conditions are "bad" increased to 16.4 percent from 14.6 percent. Consumers were also less positive about the job market. Those saying jobs are "hard to get" inched up to 21.1 percent from 19.7 percent. Those claiming jobs are "plentiful" fell to 27.0 percent from 29.1 percent in May.
Consumers remain guarded about short-term prospects. Those anticipating business conditions to improve in the next six months rose slightly to 16.1 percent from 15.3 percent. Those expecting business conditions to worsen, however, edged up to 11.0 percent from 10.2 percent.
Once again, the outlook for the labor market was mixed. Those expecting more jobs in the months ahead edged up to 14.0 percent from 13.6, while those anticipating fewer jobs also increased to 17.0 percent from 15.6 percent. The proportion of consumers expecting their incomes to increase in the months ahead was relatively unchanged at 18.7 percent.
