US consumer confidence drops on broad concerns about economy

[WASHINGTON] US consumer confidence unexpectedly declined in June on concerns about prospects for the economy, labour market and personal finances due to trade policy.

The Conference Board’s gauge of confidence decreased 5.4 points to 93, data showed Tuesday (Jun 24). The figure was below all estimates in a Bloomberg survey of economists. 

A measure of consumer expectations for the next six months dropped 4.6 points to 69, while a gauge of present conditions fell 6.4 points to 129.1.

The retreat in confidence erased nearly half of the prior month’s rebound, underscoring lingering anxiety about the potential impacts on the economy from higher US import duties. While inflation over the past three months has been modest, some consumers have become more guarded about their spending.

“Consumers were less positive about current business conditions than May. Their appraisal of current job availability weakened for the sixth consecutive month but remained in positive territory, in line with the still-solid labour market,” Stephanie Guichard, senior economist at The Conference Board, said in a statement.

The cutoff date for the Conference Board survey was June 18, five days after Israel launched a series of strikes on Iranian targets. References to geopolitics increased only slightly in write-in responses, according to the survey.

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The share of consumers expecting higher interest rates in the year ahead increased to 57 per cent, the highest since October 2023, the Conference Board data showed. BLOOMBERG