June 27, 2007	Wednesday	Jamadi-us-Sani 11, 1428

WASHINGTON, June 26: US consumer confidence reversed course and nose-dived in June to the lowest level in nearly a year as Americans saw a softening in business and employment opportunities, a survey showed on Tuesday.

The Conference Board said its consumer confidence index fell to a 103.9 in June, down from a revised 108.5 in May. It was the lowest level since the 100.2 recorded in August 2006.

The figure was far short of Wall Street forecasts of an index reading of 106 and signalled that consumer spending - accounting for roughly two-thirds of US economic activity - would cool down.

“A perceived softening in present-day business and employment conditions are the major reasons behind this month’s pull-back in confidence,” said Conference Board research director Lynn Franco.

“Looking ahead, consumers remain rather subdued about short-term economic prospects,” she said.

“All in all, the glass remains half empty and half full.”

In May the index had rebounded as Americans shrugged off record high gasoline prices and viewed more positively the current economic conditions.

But despite easing US gasoline prices this month, consumers appeared less upbeat about current conditions.

The two sub-indexes in the Conference Board survey also declined.

The present situation index fell to 127.9 in June from 136.1 in May and the forward-looking expectations index dropped to 87.9 from 90.1.

Franco noted the present situation index, a component of the consumer confidence index, had fallen to a level not seen since the final quarter last year.

In the survey, those claiming conditions were “good” slipped to 27.4 per cent from 29.0 per cent a month earlier. Those saying jobs were difficult to get rose to 21.1 per cent from 19.7 per cent, while those saying jobs were “plentiful” fell to 27.0 per cent from 29.1 per cent.

Asked about the outlook for the next six months, 16.1 per cent of respondents said they expected improving business conditions, up from 15.3 per cent a month earlier. But those expecting worsening conditions rose to 11.0 per cent from 10.2 per cent.

The preliminary results of the report were based on a survey of 5,000 US households through June 21.—AFP