Trade Tensions Leading to Decline in Consumer Confidence

(WASHINGTON, DC) The Conference Board Consumer Confidence Index declined in June, following an increase in the previous month. The Index now stands at 121.5 down from 131.3 in May. The Present Situation Index – based on consumers’ assessment of current business and labor market conditions – decreased as well. The Expectations Index – based on consumers’ short-term outlook for income, business and labor market conditions – experienced a dramatic decrease this month. After two consecutive months of improvement, Consumer Confidence declined in June to its lowest level since September 2017. Senior Director of Economic Indicators at The Conference Board, Lynn Franco explains the decrease in the Present Situation Index was driven by a less favorable assessment of business and labor market conditions. “The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence, although the Index remains at a high level, continued uncertainty could result in further volatility in the Index and, at some point, could even begin to diminish consumers’ confidence in the expansion.”