| Consensus | Consensus Range | Actual | Previous | Revised | |
| Index | 90.1 | 88.0 to 91.2 | 89.4 | 90.8 | 90.2 |
| M/M Change | -0.8 | -1.4 | |||
| M/M % Change | -0.9% | -1.5% |
Highlights
U.S. consumer confidence fell more than expected in August, following a downgrade to July’s reading. A moderate improvement in consumers’ assessment of current economic conditions slightly offset a sour outlook regarding future employment and income prospects, with continued concerns about the economy and the labor market.
The Conference Board’s Consumer Confidence Index fell in August to 89.4, down from a revised 90.2 (previously 90.8) in July, and falling short of expectations for 90.1 in the Econoday survey of forecasters.
Consumer confidence dipped for the second consecutive month, the Conference Board noted.
“Consumer appraisals of current business conditions were mildly positive. Perceptions of the current labor market improved, reversing three months of moderate decline,” it said.
“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.”
Consumers’ average 12-month inflation expectations inched upwards to 5.8 percent in August from 5.6 percent in July.
Consumers’ write-in responses on factors affecting the economy were “slightly” more pessimistic in August. “References to prices in general—and oil and gas specifically—remain elevated. Comments about war/conflict, food/groceries, trade, and jobs rose in August,” the report said.
Consumers’ views of their current financial situations dipped in August after improving last month, with a rise in the number who said their finances were “bad.” their expectations for the future were a little less optimistic compared to June and July.
Most consumers (61.3 percent) in August still expected higher interest rates over the next 12 months, up from 61.2 percent in July.
The Conference Board also said there was an increase in the share of consumers expecting that a recession over the next 12 months is “very likely.” However, overall expectations for an economic downturn remain low.
On a six-month moving average basis, buying plans for autos remained strong and home purchase expectations fell slightly but continued their upward trend.
Plans to purchase services in August dipped following a renewed spike in gasoline prices and the end of the World Cup. Looking ahead, however, consumers still plan to spend more on services in the coming months.
Market Consensus Before Announcement
Confidence expected to erode to 90.1 in August from 90.8 in July and 92.2 in June as rising energy prices fuel inflation concerns.