U.S. consumer confidence edged higher in June, ending a recent slide as lower gasoline prices eased inflation concerns.
Americans felt slightly better about current business conditions but grew more pessimistic about the job market.
Despite the modest improvement, confidence remains below historical norms, suggesting households are still wary about the economy.
U.S. consumer confidence improved modestly in June, offering a tentative sign that Americans are feeling slightly better about the economy after weeks of easing gasoline prices, though concerns about jobs and the broader outlook continue to weigh on households.
The Conference Board's Consumer Confidence Index rose to 91.2 in June, up from a revised 90.6 in May. While the increase was modest — and below economists' expectations — it marked a reversal after recent declines.
Dana Peterson, chief economist at The Conference Board, said lower oil prices helped reduce consumers' fears about inflation.
Consumers reported a slightly more favorable view of current business conditions, but confidence in the labor market weakened. The Present Situation Index, which measures perceptions of current economic and employment conditions, fell to 116.4, while the Expectations Index, which gauges consumers' outlook for the next six months, climbed to 74.4.
Recession risk?
Although the Expectations Index improved, it remains below the threshold of 80 that has historically been associated with recession risks.
The survey found growing concern about employment. The share of respondents who said jobs are "hard to get" rose to 22.5%, the highest level in more than five years, while the labor market differential — a closely watched measure comparing those who say jobs are plentiful with those who say they are hard to find — continued to narrow.
The report comes as other economic indicators paint a mixed picture. Separate government data released Tuesday showed job openings remained steady in May, suggesting employers are still hiring despite signs of a slowing labor market. Investors are now awaiting the Labor Department's June employment report later this week for a clearer reading on hiring trends.
Lower fuel costs appear to have played an important role in improving consumers' moods. After surging during the Iran conflict earlier this year, gasoline prices have retreated, easing pressure on household budgets and helping temper inflation worries.
However, consumer confidence remains below pre-pandemic levels and below where it stood a year ago, reflecting continued unease over the economy, inflation, and employment prospects. Economists note that while consumers often express pessimism in surveys, their actual spending has remained relatively resilient, helping support economic growth.