U.S. consumer confidence drops in June

Consumer confidence fell further in June as consumers worried about the economy's short-term outlook, according to The Conference Board.

The Conference Board's Consumer Confidence Index dropped to 62 in June from a revised 64.4 in May. A reading of 90 or higher indicates a healthy economy.

The index measures how shoppers feel about business conditions, the job market and the next six months. Economists watch the index closely because consumer spending accounts for about 70 percent of economic activity and is a critical part of a strong rebound.

Those expecting business conditions to improve during the next six months fell to 15.5 percent from 16.6 percent, and those expecting business conditions to worsen increased to 16.2 percent from 12.9 percent.

Additionally, 14.1 percent expect more jobs during the next six months compared with 15.4 percent in May. However, those expecting fewer jobs decreased from 21.5 percent to 20.6 percent.

"Consumer confidence declined in June, the fourth consecutive moderate decline," says Lynn Franco, director of The Conference Board Consumer Research Center. "Consumers were somewhat more positive about current conditions but slightly more pessimistic about the short-term outlook. Income expectations, which had improved last month, declined in June. If this trend continues, spending may be restrained in the short term. The improvement in the present situation index, coupled with a moderate softening in consumer expectations, suggests there will be little change in the pace of economic activity in the near term."

Date : 6/27/2012