U.S. consumer confidence rises slightly as job worries deepen
Americans felt a little better about prices in June, but more said jobs were hard to get, a split that kept confidence well below forecasts.
U.S. consumer confidence edged higher in June, but the gain masked a sharper turn in labor-market anxiety. The Conference Board said its confidence index rose to 91.2 from a downwardly revised 90.6 in May, still short of the 94.7 forecast in a Reuters poll.
The details pointed to a household mood pulled in two directions. The Present Situation Index fell 3.0 points to 116.4, while the Expectations Index rose 3.0 points to 74.4. Dana M. Peterson, the Conference Board’s chief economist, said consumers were a little more positive about current business conditions, with improved expectations for business conditions and incomes helping to offset weaker labor-market perceptions.
Jobs were the clearest source of unease. The share of consumers saying jobs were “hard to get” climbed to 22.5%, the highest reading since January 2021 and a five-and-a-half-year high. Net expectations for labor market conditions were unchanged, and the Expectations Index remained below 80, a level that has historically signaled recession risk within the next year.
Cheaper gasoline helped lift sentiment at the margin. AAA said the national average gasoline price fell to $3.99 on June 18, the first time below $4 since March 30, and dropped further to $3.91 by June 25. CNBC said prices had fallen for 28 straight days by June 18 after peaking at $4.56 on May 21, the longest consecutive decline since November 2023.
The gasoline relief followed easing fears over oil supply after the U.S.-Iran ceasefire agreement was extended during the Conference Board’s June 1 to June 23 survey period. CNBC also said prices were still about 30% higher than before the U.S. and Israel attacked Iran on Feb. 28, underscoring how quickly conflict in the Middle East has fed into fuel costs at home.
That combination left consumer psychology fragile. Lower gasoline prices can brighten the outlook briefly, especially for households still pressed by living costs, but weakening confidence in job availability can overwhelm that relief. For policymakers and investors, the June report suggested that softer inflation pressure is not yet translating into broad optimism as long as Americans remain worried about employment.
This article was produced by Prism’s automated news system from verified source data, official records, and press releases, then run through automated quality and moderation checks before publishing. The system is built and supervised by the people who set the standards it runs under. Read our full AI policy.
Did this article answer your question?
