On a scorching afternoon in Brooklyn on June 21, 2024, people were seen buying drinks in a store as the first day of summer arrived in New York City. The heat must have driven many people to seek relief with some cold beverages.
According to new data released on Tuesday, US consumer confidence slightly wavered in June as Americans seemed to become a bit more cautious about the future. The latest consumer confidence index from The Conference Board dropped to 100.4 in June from 101.3 in May, in line with economists’ expectations.
This data is closely watched as consumer spending makes up nearly 70% of US economic activity. With the US presidential election approaching, its significance is even greater now. Upbeat sentiment about the current labor market outweighed concerns about the future, although consumers’ views on current business conditions did cool slightly.
The confidence indexes from The Conference Board and the University of Michigan are key indicators of Americans’ attitudes toward the economy. While both indexes usually track similarly over time, the Conference Board’s index is more influenced by employment and labor market conditions, while the Michigan sentiment index places more emphasis on household finances and inflation.
The preliminary reading from the University of Michigan’s index for June indicated that sentiment levels had dropped to a seven-month low. These developments suggest that consumers are feeling more hesitant about the overall economic outlook.