The Conference Board Consumer Confidence Index fell 0.8 point to 89.4 in August, the second straight monthly decline.
The Present Situation Index rose 6.8 points to 121.2 after three months of drops. The Expectations Index fell 5.8 points to 68.2. The survey covered Aug. 3 through 16.
“Consumer confidence moderated slightly in August for a second consecutive month,” said Dana M Peterson, Chief Economist, The Conference Board. “The Expectations Index slipped further into negative territory, which was offset by a moderate rise in the Present Situation Index after declining in the past three months. Consumer appraisals of current business conditions were mildly positive. Perceptions of the current labor market improved, reversing three months of moderate decline. Looking ahead, consumers were more pessimistic about business conditions and the labor market over the next six months. Expectations for household incomes moderated but remained optimistic overall.”
Views of current business conditions were little changed. The labor-market differential, jobs “plentiful” minus jobs “hard to get,” rose 4.8 points to +7.5 percent. Twenty-seven percent of consumers said jobs were plentiful, up from 24.4 percent in July.
All three expectations components weakened. Net views of future business conditions fell to –6.3 percent. The labor-market outlook dropped to –11.5 percent. Household-income expectations declined 3.1 points but stayed positive at +3.8 percent.
Write-in comments grew slightly more pessimistic. References to prices, oil and gas remained high. Mentions of war and conflict, groceries, trade and jobs increased.
Confidence stayed highest among consumers under 35 and among Gen Z and Millennials on a six-month average. Independents and Republicans softened. Democrats were somewhat more positive.
Inflation expectations ticked higher. Most consumers, 61.3 percent, still expect higher interest rates over the next 12 months. Recession fears rose slightly but remained low. Auto-buying plans stayed strong. Homebuying expectations eased for the month but have been climbing from 2024 lows. Planned spending on services pulled back after a July bump tied to lower gas prices and the World Cup.
