Consumers were even more frugal and less confident in June than they were the month before, according to a report released this week by the Conference Board, perhaps foreshadowing further employment woes for the month.
The group's Consumer Confidence Index dropped to 58.5 - down from 61.7 in May. Meanwhile, the Expectations Index - a measure of economic projections - dropped 4.3 points to reach 72.4.
Analysts reported that fears of inflation waned, but income concerns increased, providing further evidence that June may offer poor showings for the job market.
"This month's decline in consumer confidence was driven by a less favorable assessment of current conditions and continued pessimism about the short-term outlook," said Lynn Franco, director of The Conference Board Consumer Research Center.
"Consumers rated both current business and labor market conditions less favorably than in May," Franco added, "and fewer consumers than last month foresee conditions improving over the next six months."
Still, a number of analysts project market conditions will improve in coming months. A recent panel of economists polled by Bloomberg found a majority expect gains in consumer spending and hiring trends to lead the economic recovery later this year.