The June consumer confidence index fell to 98.7 since the May revised reading of 103.2, which adjusted for the drop by more than 3 points.
The reduction in the general level meant a sharp drop in consumer expectations for the next six months. The expectations index fell from 73.7 to a reading of 66.4, the lowest level in nearly a decade, according to the report.
“The most unfavorable consumer outlook was driven by growing concern about inflation, particularly rising gas and food prices,” Lynn Franco, senior director of economic indicators at The Conference Board, said in a statement. communiqué. “Expectations have now fallen well below a reading of 80, suggesting weaker growth in the second half of 2022, as well as a growing risk of recession by the end of the year.”
Consumer ratings on current economic conditions, however, only declined slightly.
“The index of current more cyclical situations had remained much better, as the labor market remains strong and should drive consumer spending in the short term despite rising interest rates and higher inflation “Kathy Bostjancic, chief economist at Oxford Economics, told CNN Business. by email.
Despite the levels of confidence that tend towards the territory of pessimism and which have reached the lowest reading since February 2021, the index is higher than it was during the pandemic and is significantly above the stagnation of the pandemic. Great Recession.
However, the darkest ratings highlighted in The Conference Board index follow after an equally sad report from the University of Michigan last week. The final consumer sentiment index for June was 50, the lowest level since the university began collecting this data in 1952.
This story is being developed and will be updated.