[ad_1]
The Conference Board’s latest reading on consumer confidence showed consumer expectations in June fell to their lowest level since 2013.
The Conference Board’s consumer confidence index for June fell to 98.7 from 103.2 in May, below expectations for a reading of 100.
The report’s expectations index, which is based on consumers’ short-term outlook for income growth, the job market, and overall business conditions, fell to 66.4, its lowest reading since March 2013.
“Consumers’ grimmer outlook was driven by increasing concerns about inflation, in particular rising gas and food prices,” said Lynn Franco, senior director of economic indicators at The Conference Board. “Expectations have now fallen well below a reading of 80, suggesting weaker growth in the second half of 2022 as well as growing risk of recession by year-end.”
The Conference Board’s report follows consumer sentiment data from the University of Michigan released last week that fell to a record low of 50.2.
The University of Michigan’s report had gained outsized investor attention after Federal Reserve Chair Jerome Powell mentioned the inflation expectations component of that data as “eye-catching” during testimony before Congress last week. On Friday, the UMich report showed a slight decline — to 3.1% from 3.3% — in consumer inflation expectations, though this remains above the Fed’s 2% inflation target.
On Tuesday, The Conference Board said purchasing plans for large items like homes, cars, and appliances had held “relatively steady,” though this data has cooled since the start of the year.
“Looking ahead over the next six months, consumer spending and economic growth are likely to continue facing strong headwinds from further inflation and rate hikes,” Franco said.
—
Click here for the latest economic news and economic indicators to help you in your investing decisions
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
[ad_2]
Source link
