The Conference Board Consumer Confidence Index declined 0.7 points to 135.1 in August. The Present Situation Index increased by 6.3 points to 177.2. The Expectations Index, based on consumers short-term outlook for income declined 5.4 points to 107.0.
“Consumer confidence was relatively unchanged in August, following July’s increase,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current conditions improved further, and the Present Situation Index is now at its highest level in nearly 19 years (Nov. 2000, 179.7). Expectations cooled moderately, but overall remain strong. While other parts of the economy may show some weakening, consumers have remained confident and willing to spend. However, if the recent escalation in trade and tariff tensions persists, it could potentially dampen consumers’ optimism regarding the short-term economic outlook.”
Consumers’ outlook for the labor market was also slightly less positive. The proportion expecting more jobs in the months ahead decreased marginally from 19.9 percent to 19.7 percent, while those anticipating fewer jobs increased from 11.1 percent to 13.6 percent. Regarding their short-term income prospects, the percentage of consumers expecting an improvement decreased from 24.9 percent to 23.8 percent, however, the proportion expecting a decrease declined, from 6.6 percent to 5.8 percent.
Read the Conference Board release.