August data shows a second straight monthly decline, driven by worsening expectations for business and labor market conditions.
US consumer confidence fell 0.8 points to 89.4 in August, marking its lowest level since January, as the Expectations Index plunged 5.8 points to 68.2. The decline follows a downward revision of July’s figure to 90.2, with pessimism about future business and labor conditions outweighing improved perceptions of current economic conditions.
The Expectations Index, a gauge of consumers’ six-month outlook, dropped below the recession threshold of 80, signaling potential economic contraction within a year. Net expectations for business conditions fell 2.5 percentage points, while labor market sentiment softened by 2.6 percentage points. Income expectations also declined but remained slightly positive.
In contrast, the Present Situation Index rose 6.8 points to 121.2, the first increase in four months. More consumers described jobs as plentiful, while fewer reported difficulty finding employment.