Ahead of the Bell: Consumer Confidence

BY

A reading of June consumer confidence is forecast to drop from last month as high gas prices and the housing slump continue to affect
spending.

The Conference Board is scheduled to issue its monthly consumer confidence survey at 10 a.m.
EDT (22:00). The consensus estimate of Wall Street economists surveyed by Thomson/IFR is 105.3. That is lower than the board s May index reading of 108.

In 1985, the consumer confidence index stood at 100, according to the board.

The survey is based on a representative sample of 5,000 U.S. households to measure consumer sentiment on current economic conditions and spending outlook for the next six months. Wall
Street monitors such data because consumer spending accounts for two-thirds
of all U.S. economic activity.

In May, consumer confidence rose from the prior month, a trend economists chalked up to a
healthy job picture, which helped offset worries about higher gas prices.

Two other recent indicators -- the Reuters/University of Michigan preliminary survey and the RBC Cash Index -- released earlier this month showed that Americans were less optimistic than a
month ago.

Economists have said that consumer spending is slowing down primarily due to the sluggish housing market, which have affected stores home furnishings business, and gas prices, which have hit lower-income shoppers the hardest.

Touch

原帖由 BY 於 2007-6-26 09:51 PM 發表
A reading of June consumer confidence is forecast to drop from last month as high gas prices and the housing slump continue to affect
spending.

The Conference Board is scheduled to issue its ...

thanks Mr.By!

JKL

thanks

BY

US consumer confidence fell further than expected in June,
according to a closely watched gauge of the economy.

The New York-based Conference Board said its Consumer
Confidence Index fell to 103.9 in June. That s down from 108.0 in May and lower than the 105.3 that was expected.

BY

Consumer confidence fell more than expected in June as shoppers
fretted about jobs, a private research group said Tuesday.

New home sales also dropped in May for the fourth time in the past five months, according to government figures, in another sign of continued weakness in the housing market.

Both pieces of the economic puzzle dropped into a market that is
worried about inflation, interest rates and economic growth ahead
of a two-day meeting of the Federal Reserve that begins
Wednesday.

The Fed is expected to keep rates steady.

The New York-based Conference Board said that its Consumer
Confidence Index fell almost 5 points to 103.9, down from a
revised 108.5 in May, reaching the lowest level since August 2006
when the reading was 100.2. Analysts had expected a reading of
106.

"A perceived softening in present-day business and employment
conditions are the major reasons behind this month's pullback in
confidence," said Lynn Franco, director of The Conference Board
Consumer Research Center in a statement. "Looking ahead,
consumers remain subdued about short-term economic prospects.
All in all, the glass remains half empty and half full."

The Present Situation, which measures how shoppers feel now
about economic conditions, fell to 127.9 from 136.1 in May.
The Expectations Index, which measures shoppers outlook for the
next six months, edged down 87.9 from 90.1.

Economists closely monitor confidence since consumer spending
accounts for two-thirds of all U.S. economic activity.

The nation's retailers have had sluggish sales amid a weaker housing market and volatility in gasoline prices.

The Commerce Department reported Tuesday that sales of new
single-family homes fell in May by 1.6 percent to a seasonally
adjusted annual rate of 915,000 units. U.S. home prices fell for the 17th month in a row with all regions showing the impact of the
housing slowdown, according to a housing index released Tuesday
by Standard & Poor s.

On Monday, the National Association of Realtors said existing
home sales declined in May by 0.3 percent to 5.99 million units. It
also reported the slowest existing home sales in four years; housing
inventories rose by 5 percent to the highest level since 1992; and
the median home price declined for a record 10th consecutive
month.