Consumer confidence declined this month after two months of gains following the conclusion of the war in Iraq. The University of Michigan said its consumer sentiment index fell to 87.2 in June from 92.1 in May. Economists had expected a modest increase in the index to 93.7 in early June. The index had risen nearly 15 points in April and May, following the quick victory in Iraq. The expectations index also declined, falling to 84.2 from 93.2.
Stocks on Wall St declined sharply following the publication of the report, with the Dow Jones industrial average losing its modest opening lead to slip 0.80pc. The dollar also suffered in the wake of the news, allowing the euro to edge up to USD1.18. Richard Curtin, director of the university's consumer research centre, downplayed the significance of the decline, saying that it still indicated that consumers are willing to spend. "While such a middling level of consumer confidence will arouse anxiety, it should prove sufficient to support the continued expansion in consumer spending and the economy as a whole," he said. ///www.fxcentre.com