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Consumers are feeling less confident about the US economy as prices keep rising

The consumer confidence index for June dropped to 98.7 from May’s revised reading of 103.2, which was adjusted downward by more than 3 points.

While consumers’ assessment of current economic conditions dipped slightly, the index measuring future outlook saw a steeper decline from 73.7 to a reading of 66.4 — the lowest level in nearly a decade, according to the report.

“Consumers’ grimmer outlook was driven by increasing concerns about inflation, in particular rising gas and food prices,” Lynn Franco, The Conference Board’s senior director of economic indicators, said in a statement. “Expectations have now fallen well below a reading of 80, suggesting weaker growth in the second half of 2022 as well as growing risk of recession by year end.”

Despite confidence levels trending into pessimism territory, and hitting the lowest reading since February 2021, the index is higher than it was during the pandemic and stands significantly above the Great Recession doldrums.

This story is developing and will be updated.

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