Consumer Confidence Falls in June

New York, NY, June 29, 2010--U.S. consumer confidence fell sharply in June on concerns over the sustainability of economic recovery and the outlook for jobs, marking the end of three months of gains.

The Conference Board said its index of consumer confidence for June dropped to 52.9 compared with the 62.7 seen in May, a figure that was revised down from a previously reported 63.3. The current month's reading was below economists' expectations for 62.5.

The present situation index, a gauge of consumers' assessment of current economic conditions, fell to 25.5 from a 29.8 the prior month. May's result was previously reported as 30.2.

Meanwhile, consumer expectations for the state of economic activity over the next six months plunged to 71.2 from 84.6 in May, previously reported as 85.3.

"Increasing uncertainty and apprehension about the future state of the economy and labor market, no doubt a result of the recent slowdown in job growth, are the primary reasons for the sharp reversal in confidence," said Lynn Franco, director of the Conference Board Consumer Research Center. "Until the pace of job growth picks up, consumer confidence is not likely to pick up."