| Consumer Confidence | Back |
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Released On 6/24/2011 9:37:00 AM For Jun, 2011
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Prior | Prior Revised | Consensus | Consensus Range | Actual |
| Consumer Confidence - Level | 60.8 | 57.6 | 62.0 | 55.0 to 66.7 | 58.5 |
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Highlights
Consumer confidence fell significantly for a second straight month this month, down more than three points to 58.5 (May revised to 61.7). Both the assessment of current conditions, down nearly two points to 37.6, and the assessment of future conditions, down nearly 4-1/2 points to 72.4, show similar deterioration.
The assessment of the current jobs market this month unfortunately also deteriorated, with 43.8 percent saying jobs are hard to get for a three tenths gain from May. The assessment of the future jobs market shows fewer seeing more jobs ahead while expectations of future income show more seeing a decrease and fewer seeing an increase.
Everything is down including buying plans for cars, homes and appliances. Also down but which is a plus are inflation expectations, down a sizable five tenths to 6.0 percent in a reflection of lower gas prices.
Low consumer confidence points squarely to weakness for the June employment report, news that the nation's retailers don't want to hear. This report was posted early due reportedly to an embargo break at a news wire. Gains in the stock market edged back in initial reaction to today's data before quickly moving back to session highs.
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Market Consensus before announcement
The Conference Board's consumer confidence index in May fell 5.2 points to 60.8 in May, a six-month low. Weakness was centered in the expectations component which hit a seven-month low. More recently, the mid-June reading of the University of Michigan consumer sentiment index fell 2.5 points from the prior month's final reading.
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Definition
The Conference Board compiles a survey of consumer attitudes on the economy. The headline Consumer Confidence Index is based on consumers' perceptions of current business and employment conditions, as well as their expectations for six months hence regarding business conditions, employment, and income. Three thousand households across the country are surveyed each month.
The Conference Board changed its polling company in 2010. The current polling company is Nielsen Co. with the former being TNS Inc. The switchover reference month for the new data is November 2010. Because of the change in the polling service (even though the questions in the questionnaire are the same) the data are not completely consistent and November 2010 should be considered a break in the series. In general, while the level of consumer confidence is associated with consumer spending, the two do not move in tandem each and every month. Why Investors Care
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![[Chart]](showimage.asp?imageid=21015)
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Typically retail sales will move in tandem with consumer optimism - although not necessarily each and every month.
Data Source: Haver Analytics
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