NEW YORK — U.S. consumer confidence declined in August, with the Conference Board’s Consumer Confidence Index slipping 1.3 points to 97.4, down from July’s revised 98.7.
The Present Situation Index, which reflects consumers’ views of current business and labor market conditions, dropped 1.6 points to 131.2.
Meanwhile, the Expectations Index—gauging the short-term outlook for income, business, and employment—fell 1.2 points to 74.8, remaining below the recession-warning threshold of 80. Preliminary results were based on data collected through Aug. 20.
"Consumer confidence dipped slightly in August but remained at a level similar to those of the past three months," said Stephanie Guichard, senior economist, global indicators at the Conference Board. "The present situation and the expectation components both weakened. Notably, consumers' appraisal of current job availability declined for the eighth consecutive month, but stronger views of current business conditions mitigated the retreat in the Present Situation Index. Meanwhile, pessimism about future job availability inched up and optimism about future income faded slightly. However, these were partly offset by stronger expectations for future business conditions."
Among demographic groups, confidence fell for consumers under 35 years old, was stable for consumers aged 35 to 55, and rose for consumers over 55. The evolution of confidence by income groups was mixed, with no clear pattern emerging. By partisan affiliation, confidence weakened in August among both Republicans and Democrats but was little changed for Independents.
"Consumers' write-in responses showed that references to tariffs increased somewhat and continued to be associated with concerns about higher prices,” Guichard added. “Meanwhile, references to high prices and inflation, including food and groceries, rose again in August. Consumers' average 12-month inflation expectations picked up after three consecutive months of easing and reached 6.2% in August—up from 5.7% in July but still below the April peak of 7.0%."