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, according to a survey.
The US Conference Board said its consumer confidence index fell to 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.
In May the index had rebounded as Americans shrugged off record high petrol prices and viewed more positively the current economic conditions.
But despite easing US petrol prices this month, consumers appeared less upbeat about current conditions.
The two sub-indices 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.
Asked about the outlook for the next six months, 16.1% of respondents said they expected improving business conditions, up from 15.3% a month earlier. But those expecting worsening conditions rose to 11.0% from 10.2%.
The preliminary results of the report were based on a survey of 5,000 US households.
