Consumer Confidence Waning

The Conference Board recently released its monthly study, the Consumer Confidence Index, and the figures paint a disappointing picture.

Figures for June stood at 58.5, compared to 61.7 during May. Two other indices coupled with the report showed similarly poor results: The Present Situation Index declined to 37.6 from 39.3, and The Expectations Index decreased to 72.4 from May's figure of 76.7.

"Inflation fears eased considerably in June, but concerns about income prospects increased," said Lynn Franco, director for The Conference Board's consumer research center. "Given the combination of uneasiness about the economic outlook and future earnings, consumers are likely to continue weighing their spending decisions quite carefully."

Only 16.4 percent of consumers think the economic situation will improve in the next six months, down from 17.2 percent in May.

Consumers dealing with credit card debt could be in a difficult situation if the economy continues to get worse. It is not a wise decision to continue accruing debt in this financial climate, as the possibility of job loss is heightened.