Consumer confidence slips in August

U.S. consumer confidence slipped in August, according to the latest report released Aug. 27 by The Conference Board. The August Consumer Confidence Index® headline index fell 1.3 points to 97.4, down from 98.7 in July. The Present Situation Index declined to 131.2, while the Expectations Index dropped to 74.8, well below the 80-point threshold that historically signals recession risk.

“Consumer confidence dipped slightly in August but remained at a level similar to those of the past three months,” says Stephanie Guichard, a senior economist of 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.”

According to the report, 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.

“Consumers’ write-in responses showed that references to tariffs increased somewhat and continued to be associated with concerns about higher prices. 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%,” adds Guichard.