Forexpros – Consumer confidence in the U.S. for June deteriorated more-than-expected, falling to the lowest level since December, industry data showed on Tuesday.
In a report, Investor’s Business Daily and TechnoMetrica Market Intelligence said their IBD/TIPP Economic Optimism Index fell by 1.8 points to 46.7 in June from May’s reading of 48.5.
Economists had expected the index to fall by 1.5 points to 47.0 in June.
A reading above 50.0 indicates optimism, while those below 50.0 point to pessimism.
The index is 2.6 points above its 12-month average of 44.1 and 2.3 points above its reading of 44.4 in December 2007 when the economy entered into the recession.
The index remains 3.2 points below its all-time average of 49.9.
The Six-Month Economic Outlook, a measure of how consumers feel about the economy’s prospects in the next six months, declined 3.6 points to 46.8.
The Personal Financial Outlook, a measure of how Americans feel about their own finances in the next six months, declined 0.2 points to reach 56.1.
Confidence in Federal Economic Policies, a proprietary IBD/TIPP measure of views on how government economic policies are working dropped 1.6 points to reach 37.1.
“Consumer confidence declined as the high unemployment persists,” said Raghavan Mayur, president of TIPP.
Following the release of the data, the U.S. dollar was higher against the euro, with EUR/USD shedding 0.14% to trade at 1.2465.
Meanwhile, U.S. equity markets were mildly higher after the open. The Dow Jones Industrial Average added 0.3%, the S&P 500 index rose 0.2%, while the Nasdaq Composite index advanced 0.2%.
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