U.S. consumer confidence declined in June as worries grew about the economy and job availability in the months ahead.
The Conference Board’s Consumer Confidence Index dropped to 93.0 in June from 98.4 in May. The decline reflected growing unease across both current conditions and future expectations.
The Present Situation Index, which gauges views on current business and labor market conditions, fell by 6.4 points to 129.1. The Expectations Index, measuring the outlook for income, business, and job conditions over the next six months, dropped by 4.6 points to 69.0.
“Confidence weakened in June, giving back nearly half of May’s gains,” said Stephanie Guichard, senior economist at The Conference Board. She noted that consumer views on current business conditions and job availability have softened, though the labor market remains relatively solid.
All components of the Expectations Index declined, with consumers expressing more pessimism about business conditions, employment prospects, and future income. The downturn in confidence spanned all age groups, income levels, and political affiliations, with the largest drop seen among Republicans.
Consumer comments suggested that the top concerns remained consistent with May. Tariffs continued to weigh heavily on sentiment, with many linking them to worries about economic impacts and rising prices. Inflation remained a key concern, though mentions of easing inflation increased slightly. This aligns with a dip in average 12-month inflation expectations, which fell to 6.0% from 6.4% in May.
Outlook on the stock market showed improvement: 45.6% of consumers expected stock prices to rise over the next year, up from 37.6% two months prior. Meanwhile, 57% anticipated higher interest rates — the highest level since October 2023. Expectations of a recession also edged higher, staying above 2024 levels.
Spending and Purchase Intentions
Plans to purchase cars held steady at their highest point since December 2024, while interest in buying homes declined. More consumers reported uncertainty about making major purchases overall.
Buying intentions for most appliances ticked up slightly, while interest in electronics fell. Consumers’ plans to spend on services declined compared to May, with almost all service categories seeing reduced intentions.
Dining out remained the top planned service expense and was among the few categories to see an uptick, along with vehicle services, visits to museums and historic sites, and fitness. Vacation plans stayed steady, but there was a shift: more consumers intended to travel abroad, while fewer planned U.S. trips. Photo by Alabama Extension, Wikimedia commons.
