The Conference Board’s Consumer Confidence Index, which had been on the rise since April, declined in August. The Index now stands at 98.2 (1985=100), down from 105.7 in July. The Expectations Index dropped to 96.6 from 105.3. The Present Situation Index fell to 100.7 from 106.4 in July.
“The slowdown in job growth has curbed consumers’ confidence,” said Lynn Franco, director of The Conference Board’s Consumer Research Center. “The level of consumer optimism has fallen off and caution has returned. Until the job market and pace of hiring picks up, this caution attitude will prevail.”
Consumers’ assessment of current conditions was less upbeat that last month. Those saying business conditions are “good” declined to 23.2 percent from 25.2 percent. Those claiming conditions are “bad” rose to 20.1 percent fom 19.1 percent. Consumers saying jobs are “plentiful” decreased to 18.1 percent from 19.7 percent. Those claiming jobs are “hard to get” was virtually unchanged at 25.8 percent, compared to 25.7 percent in July.
Consumers have reduced expectations for the next six months. Those anticipating conditions to worsen increased to 8.8 percent from 7.1 percent. Those expecting business conditions to improve declined to 20.1 percent from 23 percent last month.