U.S. consumer confidence edged higher in June as lower gasoline prices offered some relief to households.
However, Americans became more concerned about labor market conditions, with a growing share of consumers saying jobs were difficult to find.
Consumer Confidence Index Rises to 91.2
The Conference Board’s consumer confidence index increased to 91.2 in June, up from a downwardly revised reading of 90.6 in May.
The result came in below economists’ expectations.
Analysts surveyed by Reuters had forecast the index would rise to 94.7 from the previously reported May figure of 93.1.
Lower Gasoline Prices Support Sentiment
Falling gasoline prices helped improve household sentiment during the month.
According to data from motorist group AAA, U.S. gasoline prices dropped below $4 per gallon in mid-June.
This marked the first time prices had fallen below that level since the U.S.-Israel conflict with Iran began at the end of February.
Lower fuel costs can support consumer confidence by reducing pressure on household budgets.
Business Conditions Viewed More Positively
Dana Peterson, chief economist at the Conference Board, said consumers had a slightly more positive view of current business conditions compared with the previous month.
The improvement suggests that households remain relatively confident about the broader economy despite ongoing geopolitical and inflation concerns.
Labor Market Perceptions Weaken
Views of the U.S. labor market deteriorated more noticeably.
The percentage of consumers who said jobs were “hard to get” rose to 22.5%.
That was the highest reading since January 2021, marking a near five-and-a-half-year high.
The increase suggests that more Americans are finding it difficult to secure employment or identify attractive job opportunities.
Consumers Expect Little Improvement in Jobs Market
Consumers also showed limited optimism about future employment conditions.
The Conference Board said households expect little change in the labor market over the next six months.
The weaker outlook could affect consumer spending if Americans become more cautious about job security and future income.
U.S. Consumer Outlook Remains Mixed
The June report presented a mixed picture of the U.S. economy.
Lower gasoline prices and slightly stronger views of business conditions helped lift overall confidence.
However, worsening labor market perceptions prevented a stronger improvement in the index.
Tags: U.S. consumer confidence, Conference Board, labor market, gasoline prices, consumer sentiment, U.S. economy, employment outlook
