U.S. Consumer Confidence Declined Again in June 2012

The U.S consumer confidence index declined again during June, after this index had declined during May.

According to the latest U.S. consumer confidence survey, the consumer confidence index fell again in June compared with May’s index: The index reached in June 62 (1985=100) a decrease of 2.4 percent points from 64.4 in May. American consumers’ short term outlook in U.S. business conditions was less upbeat in June than a month earlier. On the other hand, the consumers’ assessment of current business and labor conditions has slightly improved during the month.

Note, this report was based on a survey conducted up to June 14th. In the last couple of weeks the situation seems it hasn’t improved in the financial markets, (e.g. the American stock markets indexes continued to decline during the last couple of weeks of June).

This consumer confidence index might be among the factors to curb the rally of natural gas prices: according to a study, there was a positive significant correlation between the “consumer confidence” news and natural gas prices i.e. this news has a strong and positive correlation with natural gas prices. Furthermore, the study also suggested a positive significant coefficient between this news and oil prices.

In this case, since the recent consumer confidence index fell, this means this news might have a negative effect on energy prices including oil and natural gas rates (at best).

Today when this consumer confidence survey was published, the U.S stock markets edged up during the day including the DOW, NASDAQ and S&P500. Further natural gas and oil prices rose.

Current Nymex oil WTI, short term futures (July 2012 delivery) is traded at $79.39 per t oz. a $0.18 increase or 0.23%, as of 21:46*.

Current Nymex Henry Hub, short term futures (July 2012 delivery) is traded at $2.78 per t oz. a $.08 increase or 3.08%, as of 21:46*.

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