After a surge in July, the Conference Board’s Consumer Confidence Index pulled back in August as shoppers fretted over macroeconomic conditions.
Consumer optimism was short-lived as the Index declined to 105, from 111.9 in July.
“A softening in business conditions and labor market conditions has curbed consumers’ confidence this month,” said Lynn Franco, director of the Conference Board Consumer Research Center, in a statement. “In addition, the volatility in financial markets and continued subprime housing woes may have played a role in dampening consumers’ spirits.”
The two components that comprise the Consumer Confidence Index dropped in August. The Present Situation Index fell to 130.3 from 138.3 last month, while the Expectations Index declined to 88.2 from 94.4.
Consumers claiming conditions are “good” decreased to 26.4 percent from 28.3 percent in July, while those saying conditions are “bad” increased to 16.3 percent from 14.5 percent. Consumers who said jobs are “hard to get” rose to 19.7 percent from 18.7 percent in July, while those who said jobs are “plentiful” dipped to 27.5 percent from 30 percent.
And consumers remain cautious in their short-term outlook. Those expecting business conditions to worsen in the next six months jumped to 10.6 percent from 8.2 percent in July, while those anticipating business conditions to improve remained unchanged at 15 percent.
“But, despite less favorable conditions and in spite of all the recent turmoil, consumers still remain confident. And, current index levels suggest further economic growth in the months ahead,” Franco added.