U.S. consumer confidence sank to a record low in June as a surge in gasoline prices to more than $4 a gallon and a jump in the unemployment rate helped torpedo a modest rebound in Americans’ outlook seen the previous month, according to a survey released on Tuesday.
Investor’s Business Daily and TechnoMetrica Market Intelligence said their IBD/TIPP Economic Optimism Index fell to 37.4 in June from 40.3 in May. A reading below 50 indicates pessimism among survey respondents.
It was just the second reading ever below 40 in the 89 months since the survey’s inception.
June’s reading puts the index 28 percent below its lifetime average of 52.1, IBD/TIPP said in a statement.