U.S. consumer confidence edged lower in August as a deteriorating short-term outlook overshadowed consumers' assessments of current economic and labor conditions, industry data showed on Tuesday.
The Conference Board Consumer Confidence Index fell 0.8 points to 89.4 in August, the lowest level in seven months, down from 90.2 in July.
Consumer confidence moderated slightly in August for a second consecutive month, said Dana M. Peterson, chief economist at 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, said Peterson.
Looking ahead, consumers are more pessimistic about business conditions and the labor market over the next six months, Peterson added.
A report, based on preliminary survey results collected between August 3 and August 16, revealed a sharp divergence between how American households viewed current conditions and their expectations for the future.
The Expectations Index, which gauges consumers' short-term outlook for income, business, and labor market conditions, fell sharply by 5.8 points to 68.2.
Net expectations for the labor market also softened by 2.6 percentage points to -11.5 percent. In particular, 14.6 percent of consumers expected more jobs to be available, down from 16.4 percent in July. Additionally, 26.1 percent of consumers anticipated fewer jobs, up slightly from 25.3 percent in July.
Meanwhile, inflation and monetary policy remained key concerns for households. Consumers' average and median 12-month inflation expectations grew slightly in August. Additionally, 61.3 percent of respondents still anticipate higher interest rates over the next 12 months, though this represents a slight moderation from 62 percent in July.
US consumer confidence dips in August as future expectations sour
