US consumer confidence dips in June, Conference Board says
US consumer confidence dipped in June as expectations for business conditions and incomes moderated.
The Conference Board's consumer confidence gauge slipped from a reading of 128.8 for May to 126.4 in June (consensus: 127.5).
However, while the Present Situation sub-index was little changed at 161.1, versus a reading of 161.2 last month, the Expectations Index retreated from 107.2 to 103.2.
According to Lynn Franco, Director of Economic Indicators at The Conference Board: "While expectations remain high by historical standards, the modest curtailment in optimism suggests that consumers do not foresee the economy gaining much momentum in the months ahead."
Thus, the proportion of consumers anticipating better business conditions over the next six months declined from 23.3% to 21.4%, while the percentage of those that were expecting an improvement in their short-term income prospects declined from 21.4% o 18.8%.
As regards the outlook for the labour market, the share of Americans expecting there to be more jobs available in the months ahead increased from 19.7% o 20.0%.
"Expectations are sensitive to gas prices and the stock market, so this decline is easy to understand; at this point there's no reason to expect a sustained decline unless the ongoing trade disputes trigger a meaningful correction in stock prices," said Ian Shepherdson at Pantheon Macroeconomics.
"Confidence remains very high, though spending can't keep up due to the relatively slow rateof growth of real after-tax incomes. Elsewhere, note that 12-month inflation expectations were unchanged, after rising two tenths in May. But the trend remains broadly flat, and lower than implied by the current inflation rate."