U.S. consumer confidence fell sharply in June as worries about high inflation left consumers anticipating economic growth would weaken significantly in the second half of the year.
The Conference Board said on Tuesday its consumer confidence index dropped 4.5 points to a reading of 98.7 this month.
The present situation index, based on consumers’ assessment of current business and labor market conditions, slipped to 147.1 from 147.4 last month. The expectations index, based on consumers’ short-term outlook for income, business, and labor market conditions, tumbled to 66.4 – the lowest level since March 2013 – from 73.7 in May. “Expectations have now fallen well below a reading of 80, suggesting weaker growth in the second half of 2022 as well as growing risk of recession by year end,” said Lynn Franco, senior director of economic indicators at The Conference Board in Washington.