The Conference Board Consumer Confidence Index, which increased for three consecutive months and reached its highest point in a year and half, now stands at 52.9, down from 62.7 in May. "Increasing uncertainty and apprehension about the future state of the economy and labor market, no doubt a result of the recent slowdown in job growth, are the primary reasons for the sharp reversal in confidence," says Lynn Franco, director of The Conference Board Consumer Research Center. "Until the pace of job growth picks up, consumer confidence is not likely to pick up." The index is calculated on findings from the Consumer Confidence Survey, which is based on a representative sample of 5,000 U.S. households.

Consumers' short-term outlook, which had improved significantly in May, turned more pessimistic in June, according to the survey. Those anticipating an improvement in business conditions over the next six months decreased to 17.2 percent from 22.8 percent, while those expecting conditions will worsen rose to 14.9 percent from 11.9 percent. Consumers were also much less optimistic about future job prospects. The percentage of consumers anticipating more jobs in the months ahead decreased to 16 percent from 20.2 percent, while those anticipating fewer jobs increased to 20.8 percent from 17.8 percent. The proportion of consumers anticipating an increase in their incomes declined to 10.6 percent from 11.4 percent.