Consumer confidence falls in June on job worries

Consumer confidence fell in June to the worst level in eight months on concerns about employment and income, the Conference Board reported Tuesday.

The nonprofit organization said its consumer confidence index fell to 58.5 in June from an upwardly revised 61.7 in May. Economists surveyed by MarketWatch had expected a June reading of 60.5.

“We take this as another sign of the cooler economic conditions that we judge likely to prove transitory,” David Resler, chief economist at Nomura Securities International, wrote in a research note.

Generally when the economy is growing at a good clip, confidence readings are at 90 and above.

“Consumers rated both current business and labor market conditions less favorably than in May, and fewer consumers than last month foresee conditions improving over the next six months,” Lynn Franco, director of the Conference Board’s consumer research center, said in a statement.

Inflation rate expectations for 12 months declined to 6% in June from 6.5% in May.

The expectations barometer fell to 72.4 in June — the lowest since October — from 76.7 in May. The portion of those expecting more jobs in six months fell to 14.2% in June from 16.7% in May, while most expect the same employment. Those expecting income to decrease rose to 16.5% from 15.1%, while most expect income to remain the same.

The present situation gauge fell to 37.6 in June, a three-month low, from 39.3 in May. Those saying business conditions are “bad” ticked higher, and those saying jobs are “not so plentiful” also gained.

The percentage of respondents with plans to buy an automobile within six months fell to 10.7% in June from 13.7% in May. Those with plans to buy a home fell to 3.7% from 5.5%, and those within plans to buy major appliances declined to 47% from 47.9%.

Mantell writes for MarketWatch.com/McClatchy.