The National Association of Home Builders reports that consumer confidence dropped in May to a low not seen since September 2017.
The Consumer Confidence Index, reported by the Conference Board, fell by 7.5% from 131.3 in May to 121.5 in June, as households are less optimistic about short-term economy and labor market amid trade tensions with China and Mexico. The Present Situation Index decreased 8.1 points from 170.7 to 162.6, the lowest reading since June 2018, and the Expectation Situation Index dropped 10.9 points from 105.0 to 94.1.
Both consumers’ assessment of current conditions and the short-term future weakened in June. The shares of respondents rating business conditions “good” fell by 1.7 percentage points to 36.7, and those claiming business conditions “bad” also declined by 0.8 percentage points to 10.9%. In addition to business optimism cooling, less favorable labor market conditions, following softer job growth last month, has drawn attention.
