U.S. consumer confidence declines more than forecast in June

The Conference Board announced on Tuesday its U.S. consumer confidence gauge fell 9.8 points to 121.5 in June from 131.3 in May.

Economists had expected consumer confidence to come in at 131.2.

May’s consumer confidence reading was revised down from originally estimated 134.1.

The survey showed that the expectations index decreased from 105.0 last month to 94.1 this month, while the present situation index fell from 170.7 to 162.6.

Lynn Franco, Senior Director of Economic Indicators at The Conference Board, noted, “After three consecutive months of improvement, Consumer Confidence declined in June to its lowest level since September 2017 (Index, 120.6). 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. 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.”