New York City – Consumer confidence in the United States showed a slight decline in June, according to recent data released on Tuesday. The Conference Board’s consumer confidence index dropped to 100.4 in June from 101.3 in May, aligning with economists’ expectations. This index is closely monitored as consumer spending makes up nearly 70% of the country’s economic activity, making it a crucial indicator for economic health.

Despite concerns about the future, positive sentiment towards the labor market outweighed worries about current business conditions. Dana Peterson, chief economist of the Conference Board, noted that confidence remained within a narrow range that has persisted over the past two years. She emphasized the importance of the labor market’s strength in preserving consumer confidence.

The Conference Board’s confidence index and the University of Michigan’s consumer sentiment index are key measures of Americans’ attitudes towards the economy. While these indexes generally track similarly over time, the consumer confidence index is more responsive to employment and labor market conditions, while the Michigan sentiment index focuses more on household finances and inflation’s impact.

In a preliminary reading for June, the Michigan index displayed sentiment levels at a seven-month low, indicating growing unease among consumers. As the US presidential election approaches, fluctuations in consumer confidence could have significant implications for the economy. Analysts will be closely monitoring future data releases to gauge the trajectory of consumer sentiment in the coming months.