Consumer confidence dropped almost 10 points between May and June, reigniting fears that consumer spending would tumble and the economy would be imperiled.
Consumer confidence dropped all the way to 52.9 last month, from 62.7 in May, according to a monthly report from The Conference Board, a New York-based research group. The report said that consumers are most concerned about the current job market and whether the country is really recovering from the recession that has plagued it for two years. This was the first drop in consumer confidence after three months of gains.
"Until the pace of job growth picks up, consumer confidence is not likely to pick up," said Lynn Franco, director of the Conference Board Consumer Research Center.
A report in the Milwaukee Business Journal said that consumer confidence is closely tied to spending, as Americans will save more when they are worried the economy is in trouble. Consumer spending accounts for 70 percent of the nation’s gross domestic product. The massive decline in consumer confidence flew in the face of analyst estimates, which had confidence rising slightly.