Consumer Confidence Edges Down in August

(Illustration: Liza Summer/pexels.com)

The Conference Board, New York, reported consumer confidence dipped 0.8 points in August to 89.4.

Expectations for the future became more pessimistic, offsetting improved assessments of the present situation, The Conference Board’s Consumer Confidence Index report said. The report’s Present Situation Index—based on consumers’ assessment of current business and labor market conditions—rose by 6.8 points to 121.2, following three months of consecutive decline. But the Expectations Index, based on consumers’ short-term outlook for income, business and labor market conditions, fell by 5.8 points to 68.2.

“Consumer confidence moderated slightly in August for a second consecutive month,” noted Dana Peterson, chief economist with 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.”

Peterson noted consumer appraisals of current business conditions were mildly positive. “Perceptions of the current labor market improved, reversing three months of moderate decline,” she 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.”

On a six-month moving average basis, confidence across all age groups trended down slightly, remaining highest among consumers under 35, the monthly report said. By income, confidence was mixed, but generally higher-income groups were more optimistic. By generation, confidence for Gen Z remained the highest, followed closely by Millennials on a six-month moving average basis. “The three oldest generations—Generation X, Baby Boomer, and Silent Generation—trailed in confidence by a wider margin,” the report said.