Eu Day Light

According to CCTV, US consumer confidence declined in August as worsening short-term economic expectations overshadowed improved assessments of current economic and labor market conditions.

The Conference Board Consumer Confidence Index fell 0.8 points to 89.4 in August. The index stood at 90.2 in July. Consumer confidence therefore declined to its lowest level in the past 7 months.

Conference Board Chief Economist Dana M. Peterson said consumer confidence edged down in August for the second consecutive month.

Peterson said the Expectations Index continued to decline in negative territory, while the Present Situation Index posted a moderate increase after falling over the previous three months.

The report, based on preliminary survey results collected between August 3 and 16, revealed a clear divergence between American households’ assessments of current conditions and their expectations for the future.

The Expectations Index, which measures short-term expectations for income, business conditions and the labor market, fell 5.8 points to 68.2.

Net expectations for the labor market also fell 2.6 points to minus 11.5 percent. While 14.6 percent of consumers expected more jobs to be available in the period ahead, the figure stood at 16.4 percent in July. The share expecting fewer jobs rose from 25.3 percent to 26.1 percent.

Inflation and monetary policy were also among households’ main concerns. Consumers’ average and median 12-month inflation expectations rose slightly in August.

The share of consumers expecting interest rates to rise over the next 12 months was recorded at 61.3 percent, compared with 62 percent in July.