WASHINGTON (MNI) – The following is the text of the June IBD/TIPP
Consumer Optimism report released Tuesday:

The IBD/TIPP Economic Optimism Index decreased 2.5 points, or 5.1%,
in June posting 46.2 vs. 48.7 in May. This month’s reading puts the
index 1.9 points below its 12-month average of 48.1 and 1.8 points above
its reading of 44.4 in December 2007 when the economy entered into the
recession, and 4.7 points below its all-time average of 50.9.

Note: Index readings above 50 indicate optimism; below 50 indicate
pessimism.

The IBD/TIPP Economic Optimism Index has a good track record of
foreshadowing the confidence indicators put out later each month by the
University of Michigan and The Conference Board. IBD/TIPP conducted the
national poll of 912 adults from May 31 to June 5. The margin of error
is +/-3.3 percentage points.

The IBD/TIPP Economic Optimism Index has three key components, all
of which declined in June.

* The Six-Month Economic Outlook, a measure of how consumers feel
about the economy’s prospects in the next six months, fell 5.0 points,
or 9.8%, to 46.0. When compared to December 2007, the index shows a
gain of 13.9 points.

* The Personal Financial Outlook, a measure of how Americans feel
about their own finances in the next six months, declined 0.5 points, or
0.9%, to reach 52.2.

* Confidence in Federal Economic Policies, a proprietary IBD/TIPP
measure of views on how government economic policies are working,
decreased 2.1 points, or 4.9%, to reach 40.4.

“The persisting job situation is not helping confidence. Fully 52%
of households are job sensitive, with 28% of households having at least
one member seeking full-time employment and 41% of households concerned
that a member may be laid off in the next twelve months,” said Raghavan
Mayur, president of TIPP, a unit of TechnoMetrica Market Intelligence,
IBD’s polling partner.

“A six-week, 14% correction in the stock market hasn’t exactly
lifted public spirits,” added IBD Associate Editor Terry Jones. He noted
that the index subcomponent that showed the biggest drop in June was the
one that gauges confidence about the economy six months out. “That’s
also what the stock market does,” Jones said. “It tells you what
investors think of economic conditions six to nine months in the
future.”

The Breakdown

This month, four of the 21 demographic groups that IBD/TIPP tracks
were above 50 on the Economic Optimism Index. The highest index scores
were for 18 to 24 year olds (60.6), Democrats (60.3), and Black/Hispanic
Americans (59.7).

Nineteen groups declined on the index, while two groups advanced.

On the Economic Outlook component, four of the groups IBD/TIPP
tracks scored in optimistic territory. All 21 groups declined on the
index. The highest index scores were for 18 to 24 year olds (62.3),
Democrats (60.9), and Black/Hispanic Americans (58).

On the Personal Financial component, 14 of the groups IBD/TIPP
tracks scored in optimistic territory. Ten groups advanced on the index
while eleven groups declined.

On the Federal Policies component, two of the 21 demographic groups
tracked were above 50. Six groups advanced on the index, while fifteen
groups declined.

** Market News International Washington Bureau: 202-371-2121 **

[TOPICS: MAUDS$,M$U$$$]