US consumer confidence falls to lowest since February 2021

By Ovunc Kutlu

ANKARA (AA) - US consumer confidence fell in June to its lowest since February 2021, according to data released Tuesday by the New York-based global research group The Conference Board.

The Consumer Confidence Index, a leading indicator to predict consumer spending and economic activity, dropped 4.5 points to 98.7, down from 103.2 in May.

The expectation for the index was for it to come in at 100.4.

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

"Purchasing intentions for cars, homes, and major appliances held relatively steady—but intentions have cooled since the start of the year and this trend is likely to continue as the Fed aggressively raises interest rates to tame inflation. Meanwhile, vacation plans softened further as rising prices took their toll," Franco added.

The Present Situation Index, based on consumers’ assessment of current business and labor market conditions, fell to 147.1 from 147.4 in May.

The Expectations Index, based on consumers’ short-term outlook for income, business, and labor market conditions, fell sharply to 66.4, from 73.7, during that period and hit its lowest level since March 2013.