Consumer confidence sags
Worries about jobs, economy, Wall Street grow
By Rex Nutting, CBS.MarketWatch.com
Last Update: 10:00 AM ET June 25, 2002
NEW YORK (CBS.MW) - Consumer confidence fell in June as worries about weak job growth, a soft economy and distrust of Wall Street grew, the Conference Board said Tuesday.
The board's consumer confidence index fell to 106.4 in June from an upwardly revised 110.3 in May. The present situation index dropped to 105.7 from 111.2 while the expectations index slipped to 106.9 from 109.7.
Consumers grew more pessimistic about their own financial situation as well as the overall economy.
"Weak labor market conditions, generally soft business conditions and waning public confidence in questionable business practices have helped erode consumer confidence," said Lynn Franco, head of the board's consumer research center.
"Still, the latest readings point to continued consumer spending and moderate economic growth," she said.
Economists expected the index to drop to 105.3, according to a survey conducted by CBS.MarketWatch.com.
Buying plans softened slightly in June. The percentage that plans to buy a home or a car in the next six months fell modestly, while the percentage that plans to buy a major appliance rose. Vacation plans held steady.
The percentage that finds the current economy "bad" rose from 18.5 percent to 19.1 percent, while those who think it's "good" fell to 20.1 percent from 21.2 percent. The number that thinks jobs are plentiful fell to 20.1 percent from 21.2 percent while those who think jobs are hard to get rose to 23.1 percent, the highest in this cycle.
Meanwhile, the National Association of Realtors said existing home sales fell to an annual pace of 5.75 million in May. |
