American consumers lost some confidence in June as expectations over the near-term future fell again, according to the Associated Press.
The Conference Board, a business research group, said Tuesday that its consumer confidence index fell in June to 100.4 from 101.3 in May. The index’s decline was not quite as bad as analysts were expecting.
The index measures both Americans’ assessment of current economic conditions and their outlook for the next six months.
The measure of Americans’ short-term expectations for income, business, and the job market fell to 73 from 74.9 in May. A reading under 80 can signal a potential recession in the near future.
Consumers’ view of current conditions rose in June to 141.5, up from 140.8 in May.
Even though the unemployment rate ticked up to 4% in May, America’s employers added a strong 272,000 jobs last month, a sign that companies are still confident enough in the economy to keep hiring despite persistently high interest rates.
Last month’s sizable job gain was propelled by consumer spending on travel, entertainment, and other services. U.S. airports reported near-record traffic over the Memorial Day weekend.
Most economic indicators show the U.S. economy in good shape by historical standards, though there have been some signs that growth is slowing.
The nation’s economy slowed sharply in the first quarter to a 1.3% annual pace in the face of high interest rates, down from a brisk 3.4% growth rate in the final three months of 2023.
