US consumer confidence was broadly unchanged in June, contrary to expectations, as cautiousness over business conditions tempered optimism over rallying stocks, the Conference Board reported on this afternoon.
The Conference Board's monthly consumer confidence index stood at 83.5, marginally down from 83.6 in May, but outstripping market expectations for a fall to 82.4.
Consumer confidence is closely watched by the Federal Reserve, which started a two-day meeting today to discuss interest rates.
The market is divided on how much the Fed will cut rates at the end of its meeting tomorrow, but the confidence figure could be key in determining the size of any easing.
The index is still close to its highest since November last year, before anxiety over the war in Iraq began to undermine confidence.
Although the US unemployment rate is still near nine-year peaks, the gradual decline in weekly jobless claims raised expectations for the employment outlook, the corporate-backed research group said.
"To me, this number only reinforces a quarter-point cut because I think it is significant that this reading, even in the face of a very weak labor market, has remained resilient," Rhame said.
Consumers anticipating an improvement in business conditions rose to 23.9 per cent in June from 22.8 per cent.
The expectations index rose to 95.9 from 94.5, while the present situation index fell to 64.9 from 67.3, the group said in a statement.
The Consumer Confidence Survey is based on a sample of 5,000 US households.