Survey: Consumer confidence falls in June

Consumer confidence unexpectedly fell in June to its lowest level in three months as the economic recovery continues to build momentum.

The Thomson Reuters/University of Michigan preliminary index measuring consumer sentiment dropped to 81.2 from 81.9 in May, the survey showed on Friday.

Estimates were for a jump to around 83.


The Michigan survey showed that consumers' expectations for six months down the road decreased to 72.2, from 73.7 in May.

But consumers were slightly more upbeat about the current condition of their personal finances, with the index rising to 95.4 this month from 94.5 in May.

Expectations for inflation also fell, dropping to a 3 percent pace compared with 3.3 percent in the last survey. 

There are signs that the economy is trying to shake loose and accelerate toward stronger growth. The economy experienced a decent April rebound after a negative showing this winter, but indications are that there is a leveling out heading into the summer months. 

Still, the jobs picture is improving overall, and that could help boost incomes, and in turn improve spending and confidence for the rest of the year, economists estimate.

Employers added 217,000 jobs last month and the jobless rate remained at 6.3 percent. But there are still too many discouraged and part-time workers who want full-time jobs. 

A separate report on Friday showed another unexpected result: a 0.2 percent drop in the producer price index, mostly due to lower gas and food prices, the Labor Department’s figures showed.

Previous reports had shown that producer prices, which are the costs that producers pay for goods before they are sold to consumers, had been on the rise in recent months and were a signal that inflation might have been picking up pace in after years of remaining below the Federal Reserve's 2 percent target.