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US Consumer Confidence Not Fuelled
Rising gas prices have left consumers with a little less confidence in the economy, according to the June Executive Briefing from BIGresearch. Meanwhile consumers are less concerned about political and national security issues, and still relatively confident about employment.
The survey's confidence index lowered 1.5 points vs May to 43.3%, while only 22.9% reported concern about political and national security issues compared to 24.2% in May.
Rising prices at the pump may be responsible for the increased number saying they have become more practical in their purchases (45.9%, the highest reading since November 2003 and up from 42.9% in May). Slightly fewer are planning to pay off debt in the next month.
Purchases from auto dealers, restauranteurs, and entertainers are slightly more likely to be deferred than they were in May. 18-34 year olds are more likely to put off dining out, entertainment, and electronics purchases than those 35+, who are more apt to be putting off vacation travel, home improvement projects, and auto purchases. Another sector which looks set to lose out because of pump prices is apparel, with more people saying they will cut back on expenditure.
Consumers continue to view the employment outlook as positive - predictions of 'more' layoffs over the next 6 months are rarer, although concern with being laid off themselves is slightly up at 5.5% v. 5.0% in May.
Confidence in Wall Street lowers 3 points in June, with 59.6% of investors saying they will definitely or probably invest in the stock market, while the proportion planning to sell is flat at 6.5%.
A complete report is available via www.bigresearch.com
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