Consumer Confidence Stumbles

June 26, 2007  by in UnCategorized   

By Home Furnishings Business in on June 2007 The Consumer Confidence Index fell again in June, settling at its lowest point since August. Compiled by the Conference Board, the Index slipped to 103.9 points, down from 108.5 points in May, which had rebounded from April results.

The Present Situation Index decreased to 127.9 from 136.1 in May and the Expectations Index edged down to 87.9 from 90.1.

Holding steady were consumers’ home purchasing plans. Matching May results, 2.8 percent of consumers in June expected to buy a home in the next six months. Six percent of consumers planned an auto purchase in the next six months, while 34.4 percent expected to buy a major appliance.

“A perceived softening in present-day business and employment conditions are the major reasons behind this month’s pull-back in confidence,” said Lynn Franco, director of the Conference Board’s Consumer Research Center. “In fact, the Present Situation Index now stands at levels not seen since the final quarter of last year. Looking ahead, consumers remain rather subdued about short-term economic prospects. All in all, the glass remains half empty and half full.”

The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The cutoff date for June’s preliminary results was June 19.