US Consumer Confidence Falls More Than Expected To Fresh 16-Year Low

Source: Daily FX

US consumer confidence, as measured by the Conference Board, fell to a fresh 16-year low of 50.4 in June from 58.1. The news was much worse than expected, as the index was forecasted to slump to 56.0. A breakdown of the report shows sentiment on the present situation, future, and labor markets turned increasingly pessimistic. In fact, the employment component indicated that 30.5 percent of respondents said jobs were hard to get, up from 28.3 percent, while 14.1 percent said jobs were plentiful, down from 16.1 percent. These indexes have shown a consistent deterioration since December, and with the US unemployment rate rising steadily and energy and good prices rocketing, consumer confidence is likely to slump further, boding ill for consumption growth in the US.