Please ensure Javascript is enabled for purposes of website accessibility
US Consumer Confidence Slumps to Lowest Level in 16 Months
gvw_ap_news
By Associated Press
Published 2 years ago on
June 28, 2022

Share

 

U.S. consumer confidence slipped to its lowest level in 16 months as persistent inflation and rising interest rates have Americans as pessimistic as they’ve been about the future in almost a decade.

The Conference Board said Tuesday that its consumer confidence index slipped to 98.7 in June from 103.2 in May, the second straight monthly decline and the lowest level since February 2021.

The business research group’s expectations index, based on consumers’ six-month outlook for income, business and labor market conditions, tumbled in June to 66.4 — its lowest level since 2013 — from 73.7 in May. It has been a consistently weak spot in the survey recently.

“Consumers’ grimmer outlook was driven by increasing concerns about inflation, in particular rising gas and food prices,” said Lynn Franco, the Conference Board’s senior director of economic indicators. “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.”

The present situation index, which measures consumers’ assessment of current business and labor conditions, ticked down less than a full point in June to 147.1.

Inflation has soared over the past year at its fastest pace in more than 40 years, with rising costs for nearly everything negating Americans’ pay raises.

Consumer prices surged 8.6% in May from a year earlier, faster than April’s year-over-year increase of 8.3%, the Labor Department reported earlier this month. The new inflation figure was the highest since 1981 and came after the Federal Reserve raised its main borrowing rate by a half point in early May in its effort to tamp down rising inflation.

The Labor Department’s producer price index — which measures inflation before it reaches consumers — also surged 10.8% in May from a year earlier, putting pressure on the Federal Reserve to become even more aggressive in its fight against historic inflation.

The Fed responded a couple of weeks ago by raising its main borrowing rate by three-quarters of a point, its biggest increase since 1994. More rate hikes are expected this year.

The Conference Board’s survey showed that consumers grew more pessimistic about short-term business conditions, the job market and their own short-term financial prospects.

Purchasing intentions for big-ticket items — cars, homes and major appliances — remained relatively stable, but rising costs for travel have forced Americans to dial back some vacation plans.

RELATED TOPICS:

DON'T MISS

Obesity Drug Used in Mounjaro and Zepbound May Help Treat Dangerous Sleep Apnea

DON'T MISS

At Least 6 Heat-Related Deaths Reported in Metro Phoenix So Far This Year as High Hits 115 Degrees

DON'T MISS

Coffee Research Center at UC Davis Poised to Deliver a Jolt

DON'T MISS

Workers Sue Disney Claiming They Were Fraudulently Induced to Move to Florida from California

DON'T MISS

Fresno Suspect Arrested in Armed Home Invasion, Earlier Burglary

DON'T MISS

A Half-Century of Roaring Passion: Cobras, Shelby Mustangs & The People Who Love Them

DON'T MISS

On a Night for Doubling up, Lilly King Also Takes Home an Engagement Ring

DON'T MISS

Paris Awaits for Sha’Carri, Lyles and Dozens More, but Olympic Spots Must Be Earned at Trials

DON'T MISS

New York Commission Suspends Garcia for a Year and Rules His Win Over Haney a No-Contest

DON'T MISS

Fresno Police Will Target Dangerous Drivers on Saturday

UP NEXT

The Supreme Court Upholds a Tax on Foreign Income Over a Challenge Backed by Business Interests

UP NEXT

Mike Pence’s Foundation Launches a $10 Million Election-Year Campaign to Preserve Trump-Era Tax Cuts

UP NEXT

‘We Just Always Expect It to Work’: 911 Outage Shows System’s Perils

UP NEXT

A Look at Where the Navy’s 11 Aircraft Carriers Are Now

UP NEXT

U.S. Debt on Pace to Top $56 Trillion Over Next 10 Years

UP NEXT

On Juneteenth, Freedom Came With Strings Attached

UP NEXT

Retail Sales Rise a Meager 0.1% in May from April as Still High Inflation Curbs Spending

UP NEXT

After Delay, Top Democrats in Congress Sign Off on Sale of F-15 Jets to Israel

UP NEXT

Joe Biden’s Best Chance to Shake up the Race

UP NEXT

Biden’s Stimulus Juiced the Economy, but Its Political Effects Are Muddled

Workers Sue Disney Claiming They Were Fraudulently Induced to Move to Florida from California

5 hours ago

Fresno Suspect Arrested in Armed Home Invasion, Earlier Burglary

5 hours ago

A Half-Century of Roaring Passion: Cobras, Shelby Mustangs & The People Who Love Them

6 hours ago

On a Night for Doubling up, Lilly King Also Takes Home an Engagement Ring

6 hours ago

Paris Awaits for Sha’Carri, Lyles and Dozens More, but Olympic Spots Must Be Earned at Trials

6 hours ago

New York Commission Suspends Garcia for a Year and Rules His Win Over Haney a No-Contest

6 hours ago

Fresno Police Will Target Dangerous Drivers on Saturday

7 hours ago

How Misleading Videos Are Trailing Biden as He Battles Age Doubts

7 hours ago

Bragg Asks Judge to Extend Trump’s Gag Order, Citing Deluge of Threats

7 hours ago

Still Need Your Landline? California Just Stopped AT&T from Pulling the Plug

7 hours ago

Obesity Drug Used in Mounjaro and Zepbound May Help Treat Dangerous Sleep Apnea

A popular obesity drug may help treat a dangerous disorder in which people struggle to breathe while they sleep, a new study finds. Tirzepat...

4 hours ago

4 hours ago

Obesity Drug Used in Mounjaro and Zepbound May Help Treat Dangerous Sleep Apnea

4 hours ago

At Least 6 Heat-Related Deaths Reported in Metro Phoenix So Far This Year as High Hits 115 Degrees

4 hours ago

Coffee Research Center at UC Davis Poised to Deliver a Jolt

Photo of the entrance to Walt Disney World
5 hours ago

Workers Sue Disney Claiming They Were Fraudulently Induced to Move to Florida from California

5 hours ago

Fresno Suspect Arrested in Armed Home Invasion, Earlier Burglary

6 hours ago

A Half-Century of Roaring Passion: Cobras, Shelby Mustangs & The People Who Love Them

6 hours ago

On a Night for Doubling up, Lilly King Also Takes Home an Engagement Ring

6 hours ago

Paris Awaits for Sha’Carri, Lyles and Dozens More, but Olympic Spots Must Be Earned at Trials

MENU

CONNECT WITH US

Search

Send this to a friend