Economy: Consumer Confidence Index (CCI) for June 2024

Consumer Confidence Index® (CCI) for this month (June, 2024) was released by The Conference Board® this morning:

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Predicted: 99.0

Actual: 100.4

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Previous Month (revised): 101.3

Change from Previous Month: -0.9% (-0.9 point)

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The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

From Today's Report:

"...Consumers’ Persistent Concerns about the Future Continues to Weigh on Confidence

The Conference Board Consumer Confidence Index® dipped in June to 100.4 (1985 = 100), down from 101.3 in May. The Present Situation Index -- based on consumers’ assessment of current business and labor market conditions—increased to 141.5 from 140.8 last month.

However, the Expectations Index -- based on consumers’ short-term outlook for income, business, and labor market conditions -- fell to 73.0 in June, down from 74.9 in May. The Expectations Index has been below 80 (the threshold which usually signals a recession ahead) for five consecutive months.

'Confidence pulled back in June but remained within the same narrow range that’s held throughout the past two years, as strength in current labor market views continued to outweigh concerns about the future. However, if material weaknesses in the labor market appear, Confidence could weaken as the year progresses,' said Dana M. Peterson, Chief Economist at The Conference Board.

'Consumers expressed mixed feelings this month: their view of the present situation improved slightly overall, driven by an uptick in sentiment about the current labor market, but their assessment of current business conditions cooled. Meanwhile, for the second month in a row, consumers were a bit less pessimistic about future labor market conditions. However, their expectations for both future income and business conditions weakened, weighing down the overall Expectations Index.'

'The decline in confidence between May and June was centered on consumers aged 35-54. By contrast, those under 35 and those 55 and older saw confidence improve this month. No clear pattern emerged in terms of income groups. On a six-month moving average basis, confidence continued to be highest among the youngest (under 35) and wealthiest (making over $100K) consumers.'

Peterson added: 'Compared to May, consumers were less concerned about a forthcoming recession. However, consumers’ assessment of their Family’s Financial Situation -- both currently and over the next six months -- was less positive.' (These measures are not included in calculating the Consumer Confidence Index®)

Average 12-month inflation expectations ticked down slightly from 5.4% to 5.3%. June’s write-in responses revealed that elevated prices, especially for food and groceries, continued to impact consumers’ views of the economy, followed by the labor market and US political situation. Notably, the share of respondents believing the 2024 election would impact the economy was low in comparison to write-ins in June of 2016 and slightly higher than in 2020.

Consumers were positive about the stock market, with 48.4% expecting stock prices to increase over the year ahead, compared to 23.5% expecting a decrease and 28.1% expecting no change. Meanwhile, the share of consumers expecting higher interest rates over the next twelve months dropped to 52.6%, its lowest level since February.

On a six-month moving average basis, purchasing plans for homes were largely unchanged and remained historically low in June. Buying plans for cars also stalled. Meanwhile, buying plans for most big-ticket appliances and smartphones increased slightly, though fewer consumers planned to buy a laptop or a PC.

The share of consumers planning a vacation† over the next six months continued to increase and remains above last June’s level. More consumers planned to vacation in the United States than abroad. As in recent years, more people plan to travel by car than by plane. Overall, the share of consumers planning to go on vacation is still about 10 percentage points lower than pre-pandemic..."

Every month, The Conference Board sends a questionnaire to 5,000 U.S. households. Survey participants are polled about their feelings regarding the U.S. economy, current and future, and about their own fiscal circumstances. On average, 3,500 participants complete and return the 5-question survey.

The baseline "100" score for the CCI is associated with 1985 survey data.

When consumers feel good about the economy, they tend to do more spending, and vice versa.

Based in New York City, The Conference Board is a private, not-for-profit organization with a mission to, "create and disseminate knowledge about management and the marketplace to help businesses strengthen their performance and better serve society."

The CCI is usually released on the last Tuesday of the month.

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