Confidence Index Drops to 50.4

The Conference Board described its June 2008 report as "dismal." Business, job and income expectations were all down.

The Conference Board had more bad news for advertisers in late June, announcing that its monthly Consumer Confidence Index had plunged another 7.7%. That was its fifth lowest level ever. The index fell from 58.1 in May to 50.4 in June, just over half its 100 base in 1985.

Even more discouraging, the Board said its Expectations Index fell from 47.3 in May to 41.0 in June, an all-time low.

"Perhaps the silver lining to this otherwise dismal report is that Consumer Confidence may be nearing a bottom," the Board said in its monthly report June 24.

Other consumer opinions from its June survey:

• Business conditions are "bad"-- 32.5%, up from 29.7%
• Business conditions are "good"-- 11.5%, down from 13%
• Job are "hard to get"-- 30.5%, up from 28.3%
• Jobs are plentiful – 14.1%, down from 16,1%

Consumer expectations:

• Business conditions will worsen over the next six months -- 33.9%, up from 32.9%
• Business conditions will improve--8.8%, down from 10.6%
• Expect fewer jobs in the months ahead -- 35.5%, up from 32.3%
• Expect more jobs -- 8%, down from 9.0%
• Expect their incomes to increase -- 12.3%, down from 14.1%

The Conference Board is an international business membership and research organization headquartered in New York. It says the Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households

Source: Conference Board News Release June 24, 2008