Consumer Confidence Slid in June on Trade Tensions
U.S. optimism about the economy deteriorated in June to its lowest level in 21 months as consumers fretted over escalating trade tensions and a cooling jobs market, according to a monthly barometer of Americans’ mood.
The Conference Board, a private research group, said Tuesday its index of consumer confidence fell to 121.5 in June. That was a nearly 10-point drop from 131.3 in May and was the index’s lowest level since September 2017. Economists surveyed by The Wall Street Journal had expected a reading of 131.
Also Tuesday, the Commerce Department said purchases of newly built single-family homes posted an unexpected decline in May. New-home sales decreased 7.8% from April to a seasonally adjusted annual rate of 626,000, the slowest pace of sales since December. That could weigh on overall economic growth in the second quarter of the year—and came despite falling mortgage rates, which make home ownership more affordable.
New-home sales are a relatively narrow slice of all U.S. home sales, and sales data can be volatile and subject to revisions. Still, taken together the two reports show “heightened anxiety” on the part of consumers, said Robert Frick, an economist at Navy Federal Credit Union.
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A gauge of household assessments about the present economic situation decreased to 162.6 from 170.7, while an index tracking expectations for the future decreased to 94.1 from 105.0 last month.
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https://www.wsj.com/articles/consumer-confidence-slid-in-june-on-trade-tensions-11561473365 (paid subscription)
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