Americans felt more shaken about the economy in June

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People buy drinks at a store on a hot afternoon in Brooklyn on the first day of summer on June 21, 2024, in New York City.



CNN

New data released on Tuesday showed that US consumer confidence wavered slightly in June as Americans grew more concerned about the future.

The Conference Board’s latest consumer confidence index fell to a reading of 100.4 in June from 101.3 in May. The reading was in line with economists’ expectations.

American confidence readings are usually closely watched, as consumer spending accounts for nearly 70% of US economic activity. But this importance has become more clear now, with the US presidential elections approaching in a few months.

Optimistic sentiment about the strength of the labor market has outweighed concerns about the future; However, consumer sentiment about current business conditions has cooled, noted Dana Peterson, chief economist at the Conference Board.

“Confidence fell in June but remained within the same narrow range that has remained in place over the past two years, as the strength of current labor market views continues to outweigh concerns about the future,” she said in a statement. “However, if material weaknesses emerge in the labor market, confidence could weaken as the year progresses.”

Conference Board Confidence Index University of Michigan Consumer Confidence Index published twice monthly They are the two main measures of consumers’ attitudes toward the current and future strength of the economy.

Although the two indexes typically track similarly over time, the Consumer Confidence Index is more influenced by employment and labor market conditions, while the Michigan Sentiment Index focuses more on household finances and the impact of inflation.

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The preliminary reading of the Michigan index for June, released earlier this month, showed that sentiment levels were at their lowest level in seven months.

This story is evolving and will be updated.

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