Consumer Confidence Plummets to Lowest Level Since 1992

The Conference Board's consumer confidence index for June tumbled to levels not seen since 1992 at 50.4 in Tuesday's report, led by a near 10-point decline in the present situation component. Economists were looking for a moderate decline to 56.0.

(Mortgage news daily) -- The previous month's reading of 57.2 was revised upwards to 58.1. The three-month average for consumer confidence is now at 57.1, down from 62.3 last month. One year ago, the index stood at 105.3.

The expectations category fell to 41.0, down from 47.3 in May, and the present situation component fell to 64.5 from 74.2 in May.

Lynn Franco, director of the Conference Board's Consumer Research Center, said, "Looking ahead, consumers' economic outlook is so bleak that the Expectations Index has reached a new all-time low. Perhaps the silver lining to this otherwise dismal report is that Consumer Confidence may be nearing a bottom."

Consumers' appraisal of the job market continued to be pessimistic in June, with those saying jobs were "hard to get" increasing to 30.5% from 28.3% and those claiming jobs were "plentiful" decreasing to 14.1% from 16.1%.

Inflation expectations remained at 7.7%, a record high.

"Consumers' assessment of present-day conditions continues to grow more negative and suggests the economy remains stuck in low gear," added Franco.