Consumers Concerned About Short-Term Economic Outlook

Despite a one-point increase in consumer confidence this month, consumers remain concerned about current economic conditions, according to a recent report from The Conference Board.

Following last month's decline, the Consumer Confidence Index increased to 105.7 (1985=100) in June, up from 104.7 in May.

The Expectations Index also edged up, rising to 87.6 from 85.1, while the Present Situation Index declined for the second consecutive month, falling to 132.7 from 134.1.The decline in the Present Situation Index is "a signal that the economy is shifting into lower gear heading into the second half of this year," according to the report.

While consumers' outlook for the labor market improved moderately in June, the proportion of consumers claiming overall conditions are "good" fell to 26.8 percent from 28.5 percent.

**Taken from The California Association of Realtors Bulletin, Dated June 29, 2006.