Consumer Confidence Takes a Hit

Consumer Confidence Takes a Hit

1085

According to the monthly report on consumer confidence filed by the New York-based Conference Board, the Consumer Confidence Index for August declined to 105.0 from a revised reading of 111.9 in July, which was still a six-year high. Although the index was down, it was slightly stronger than the 104.5 that Wall Street analysts expected.

“A softening of 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 released statement. “In addition, the volatility in financial markets and continued subprime housing woes may have played a role in dampening consumers’ spirits.”

The Present Situation index, which measures how shoppers feel now about economic conditions, declined to 130.3 in August from 138.3 in July. The Expectations Index, which measures shoppers’ outlook for the next six months, fell to 88.2 from 94.4.

Consumers, once again, turned cautious in their short-term outlook. Those expecting business conditions to worsen in the next six months rose to 10.6 percent from 8.2 percent, while those anticipating business conditions to improve was virtually unchanged at 15.0 percent. The outlook for the labor market was also less favorable. The percent of consumers expecting more jobs in the months ahead declined to 13.0 percent from 13.8, while those anticipating fewer jobs increased to 15.3 percent from 14.9 percent. The proportion of consumers expecting their incomes to increase in the months ahead was virtually unchanged at 19.1 percent.

The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS. TNS is the world’s largest custom research company. The cutoff date for August’s preliminary results was August 22nd.

NO COMMENTS