Washington (awp/afp) – Consumer confidence in the United States deteriorated sharply in June, more than expected, falling to its lowest level since February 2021, and consumers are pessimistic for the months to come. come, according to the Conference Board index released on Tuesday.
Falling to 98.7 points, the index lost 4.5 points compared to May, the data for which was also revised downwards (103.2 against 106.4 points previously announced). Analysts were counting on 101 points in June.
The component measuring consumers’ perception of the current economic climate remained almost unchanged (147.1 against 147.4 the previous month).
But those appreciating the future situation, which is based on their expectations in terms of income and the job market, fell 7.3 points to 66.4 points, its lowest level since March 2013.
“The more gloomy view of the economy ahead is driven by concerns about inflation, particularly rising gas and food prices,” said Lynn Franco, senior director of economic indicators at The Conference. Board, quoted in a press release.
She adds that consumers now anticipate weaker growth in the second half and a greater risk of recession by the end of the year.
“Purchase intentions for cars, homes and major appliances have remained relatively flat, but purchase intentions have declined since the start of the year and this trend is expected to continue as the Fed aggressively raises rates of interest to control inflation,” added Ms. Franco.
She also notes that at the same time, holiday plans have dwindled “as rising prices take their toll”.
“Over the next six months, consumer spending and economic growth should continue to face strong headwinds from continued inflation and rising rates,” she said.
On Friday, the other index measuring consumer confidence, published by the University of Michigan, also revealed greater pessimism.
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