Consumer Confidence Sags to All-Time Low in June
Thanks to rising food and energy prices, falling housing prices and a softening job market, consumer confidence fell to an all-time low in June, according to the RBC Consumer Attitudes and Spending by Household Index by RBC Capital Markets (New York).
The June index stood at 22.5, down nearly 17 points from May’s 39.0 level.
“Despite economic stimulus checks being sent to millions of Americans, [June’s] reading indicates consumers are under extreme and growing financial pressure,” said T.J. Marta, economic and fixed income strategist for RBC Capital Markets.
Fewer than one in four Americans (23 percent) rated their current financial situation as strong, versus 30 percent in May. However, 22 percent were more confident making a major purchase than they were six months ago, up from 19 percent in May.
Two out of five Americans (43 percent) reported job loss in their immediate circle, versus 39 percent in May. However, 40 percent said it is unlikely that they or someone they know will lose their job in the next six months, versus 44 percent in May.
The number of consumers reporting less confidence in investing remained statistically unchanged at 60 percent.
To see the entire RBC CASH Index report, go to www.rbc.com/newsroom/rbc-cash-index.html. [August 2008 PET AGE]
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