Consumer Confidence: Still Near Highs, But Expectations Component Lost Momentum

Bottom Line: While the level of consumer confidence in May remained near 18-year highs in June, consumers are seeing less potential future momentum in economic growth. The expectations component of the survey has been sideways to only slightly higher for a year now. The overall index, at 126.4, is now below its three month average of 126.9. Additionally, details were mixed as 6-month outlooks for business fell modestly, outlooks for income fell modestly but employment rose modestly. Consumer Confidence FELL by 2.4 points in June to 126.4, compared with market expectations for a decline to 128.0. The index is now 7.8% ABOVE its year ago level. Present Situation Index FELL by 0.1 points to 161.1. The index is 12.0% ABOVE its year ago level. The Expectations Index FELL by 4.0 points to 103.2. The index is 3.6% ABOVE its year ago level. The labor differential, the percentage of respondents who said jobs are “hard to get” from the percentage who said jobs are “plentiful” , moved lower by 1.4 points to 25.1.