June 28, 2002 -- The Conference Board said this week that the Consumer Confidence Index declined four points in June. The Index now stands at 106.4 (1985=100), down from 110.3 in May. The Present Situation Index fell to 105.7, down from 111.2 last month. The Expectations Index fell to 106.9, down from 109.7.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by NFO WorldGroup, a member of The Interpublic Group of Companies (NYSE: IPG).
"Weak labor market conditions, generally soft business conditions and waning public confidence in questionable business practices have helped erode consumer confidence," notes Lynn Franco, Director of The Conference Board's Consumer Research Center. "Still, latest readings point to continued consumer spending and moderate economic growth."
Consumers' assessment of current conditions was less favorable in June. Those rating conditions as "good" dipped from 21.2 percent to 20.1 percent. Consumers rating current business conditions as "bad" rose from 18.5 percent to 19.1 percent. Those reporting jobs were "hard to get" increased from 21.8 percent to 23.1 percent. Those claiming jobs were "plentiful" decreased from 21.2 percent to 20.1 percent.
Consumers' expectations for the next six months were also less optimistic. Those anticipating an improvement in business conditions declined from 24.9 percent to 23.6 percent. Those expecting conditions to worsen rose marginally from 6.8 percent to 7.0 percent.
The employment outlook for the next six months also weakened. Fewer consumers expect more jobs to become available in the next six months -- 20.1 percent in June, down from 21.2 percent in May. Those expecting fewer jobs to become available rose from 13.6 percent to 14.2 percent. Only 20 percent of the surveyed consumers expect their incomes to increase over the next six months, down from 21.1 percent in May.
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