U.S. consumer confidence declines more than forecast in August

The Conference Board announced on Tuesday its U.S. consumer confidence fell 11.3 points to 113.8 in August from 125.1 in July. This was the lowest reading since February.

Economists had expected consumer confidence to drop to 124.0.

July’s consumer confidence reading was revised down from the originally estimated 129.1.

The survey showed that the present situation index dropped from 157.2 in July to 147.3 this month. Meanwhile, the expectations index decreased from 103.8 last month to 91.4 in August.

Consumer confidence retreated in August to its lowest level since February 2021,” noted Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “Concerns about the Delta variant - and, to a lesser degree, rising gas and food prices - resulted in a less favorable view of current economic conditions and short-term growth prospects. Spending intentions for homes, autos, and major appliances all cooled somewhat; however, the percentage of consumers intending to take a vacation in the next six months continued to climb. While the resurgence of COVID-19 and inflation concerns have dampened confidence, it is too soon to conclude this decline will result in consumers significantly curtailing their spending in the months ahead.”