Consumer confidence wanes again in June

Consumers' feelings about the economy continued their four-month slide in June despite falling gas prices. 

Confidence fell to 62 percent in June, a drop from the 64.4 reading in May, The Conference Board said Tuesday.

"Consumers were somewhat more positive about current conditions, but slightly more pessimistic about the short-term outlook," said Lynn Franco, director of Economic Indicators at The Conference Board in a statement. 

"Income expectations, which had improved last month, declined in June," she said. 

"If this trend continues, spending may be restrained in the short-term."

Spending represents 70 percent of economic activity and is needed to boost the economic recovery. Consumers have been reluctant to pick up their pace of spending with the economy mired in uncertainty. 

Concerns abound about the labor market, the slowly improving housing sector and the financial crisis tearing through Europe. 

The index is well below the reading of 90 that indicates a healthy economy, a level that hasn't been hit since the recession started in December 2007. 

Still, the overall index is much better than the 25.3 level hit in February 2009, the lowest in the survey's history. 

Franco said the indexes suggest "there will be little change in the pace of economic activity in the near-term."

Meanwhile, the present situation index increased to 46.6 from 44.9 last month, while the expectations gauge declined to 72.3 from 77.3.

Consumers' assessment of current conditions improved slightly in June. 

Those saying business conditions are "good" increased to 14.9 percent from 13.6 percent; however, those saying business conditions are "bad" increased to 35.1 percent from 34.7 percent. 

Feelings about the job market remained mixed. 

Those stating jobs are "hard to get" increased to 41.5 percent from 40.9 percent, while those claiming jobs are "plentiful" increased to 7.8 percent from 7.5 percent.

Respondents anticipating more jobs in the months ahead declined to 14.1 percent from 15.4 percent, while those expecting fewer jobs also declined to 20.6 percent from 21.5. 

The proportion of consumers expecting an increase in their incomes declined to 14.8 percent from 15.7 percent.

The job market had picked up steam through the unseasonably warm winter but that pace slowed considerably through the spring. 

The next jobs report for June is due out July 6. 

Consumers also have grown less upbeat about the short-term outlook. 

The percentage of consumers anticipating business conditions to improve over the next six months declined to 15.5 percent from 16.6, while those expecting business conditions will worsen increased to 16.2 percent from 12.9 percent.