Concern about job losses overshadowed relief about continuing low interest rates, the University of Michigan's well-regarded consumer confidence survey indicated.

More than 2 million US jobs have been lost in the past two years.

While worries about the continuing paucity of work have been reflected in rising unemployment insurance payouts, although the growth in new claims seems to be slowing.

Job prospects

Friday's University of Michigan figures showed confidence dipping in June, compared to the May figure.

But they were still better than many economists had feared.

June's UMich reading, as the survey is nicknamed, came in at 89.7, a fall from 92.1 the month before - but an improvement on the 87.5 economists had expected.

"The lack of improvement in job prospects remains the primary concern of consumers," said Richard Curtin, head of the university's consumer research team.

"Consumers nonetheless expect the economy to improve in the year ahead."

At the same time, the US Department of Commerce said consumer spending was up 0.1% in May over the previous month.

Incomes were up 0.3%, indicating a cautious recovery in the state of household finances in the US.

Coming on top of a quarter-point fall in interest rates decreed by the Federal Reserve on Wednesday, the hope among observers is that US shoppers will help underpin the long-awaited recovery.