With the possible exception of very modest good news from the housing front, US economic data has simply taken a turn south. And consumer confidence is among the front runners. Today’s report from the Conference Board showed a drop in consumer confidence in June, and Gallup reports today that its economic confidence index also fell to a reading of -26 for the week ending June 24th, down from a -24 reading for the prior week.
Gallup suggests that the drop in confidence is attributable to the troubles in Europe and US bank ratings’ downgrades. The company further suggests that June’s unemployment figures could decline and that “could help improve confidence.” If gasoline prices continue to fall that could also boost confidence in the US economy.