follow us

Consumers Still Fighting Jitters

Don Hogsett, Staff Staff -- Home Textiles Today, July 3, 2006

Staging a modest rally after a major slide the month before, consumer confidence edged up 1.0% during June to a reading of 105.7 as Americans say they feel better about business conditions looking six months ahead than they do about what's happening now, The Conference Board (CB) reported. On a persistent and worrisome note, consumers feel worse about what's going on now in the economy, which the CB said could point to a slowdown during the back half of the year.

Though managing a modest rally, the June reading won back only a fraction of the steep 4.6% fall-off during May, and the widely watched bellwether of future consumer spending remains 3.7% beneath the April reading of 109.8, which marked a 13-month high in the index.

“The slight bounce-back in confidence this month was a result of the moderate improvement in consumers' expectations,” said Lynn Franco, director of the CB's Consumer Research Center. “Despite the uptick, consumers remain concerned about the short-term outlook.”

She said the part of the index measuring current conditions “lost ground for a second consecutive month, a signal that the economy is shifting into lower gear heading into the second half of this year.”

The portion of consumers claiming conditions are 'good' declined to 26.8% from 28.5% during May. Those claiming conditions are 'bad' eased to 14.9% from 15.2%.

Views of the labor market and jobs outlook were mixed. The number of consumers who think jobs are 'plentiful' dropped to 28.1% from 29.1% a month ago, while the number who think jobs are 'hard to get' decreased slightly, to 19.9% from 20.2%.

Buying plans in June
Plans to purchase over the next six months

Source: The Conference Board
Homes 3.4
Carpets -12.0
Cars -14.3
Major appliances -11.0
Vacation -5.0


Confidence by region

Region % change
Source: The Conference Board
New England -1.6%
Middle Atlantic 5.1
East North Central 2.5
West North Central 1.0
South Atlantic -3.6
East South Central 3.3
West South Central 3.8
Mountain 10.0
Pacific 3.3


Featured Video

  • Online Moves From Afterthought To Main Thought For Textiles Suppliers

    Camera Icon More Videos

Other Home Furnishings Sites

Casual Living
Gifts and Decorative Accessories
Home Accents Today
Kids Today
Furniture Today