consumers concerned about short-term outlook

Consumer confidence took a downward turn in May, according to The Conference Board's Consumer Confidence Index.

Following increases in March and April, the Index fell 6.6 points to 103.2 (1985=100) this month. The Expectations and Present Situation indices also declined, decreasing to 83.7 and 132.5, respectively.

Though consumers' assessment of current conditions remains positive, their outlook for the next six months is less optimistic. Concerns about the labor market and earning potential helped push the Expectations Index to a low last seen following Hurricane Katrina in September 2005. According to the report, fewer people anticipate improvements in the labor market and overall business conditions.

In May, the proportion of consumers expecting their incomes to increase in the near-term future declined to 16.6 percent, while those anticipating more jobs to become available edged down to 14.6 percent.

**taken from the california association of realtors bulletin, dated june 1, 2006.