Consumer confidence tumbles in June
NEW YORK (Reuters) - Consumer confidence fell in June to its lowest in 16 years as high inflation continued to sap confidence and pushed expectations for the future to a record low, the Conference Board said on Tuesday.
The Conference Board, an industry group, said its inflation expectations gauge matched the record-high 7.7 percent it hit in May, which will keep Federal Reserve policy makers concerned over price growth as they meet to decide rates on Tuesday and Wednesday.
The Conference Board said its overall monthly measure of consumers' mood declined to 50.4 this month -- the lowest since 47.3 in February 1992 -- from a revised 58.1 in May. May's reading was originally reported at 57.2.
Economists on Wall Street had been expecting a reading of 56.4, according to a Reuters poll. Their forecasts ranged from 50.0 to 60.0.
The index has now dropped by more than half since last July, when it was at 111.90. Since then, housing market troubles triggered the most severe credit crisis in at least a decade.
Consumers made a grim assessment of their present situation and their future prospects. The present situation index dropped to 64.5 from a revised 74.2 in May. The expectations barometer slid to an all-time low of 41.0 from a revised 47.3 in May.
(Reporting by Burton Frierson; Editing by Theodore d'Afflisio)
