U.S. consumer confidence declined to 89.4 in August, the lowest level since January, as households grew more pessimistic about business conditions and the labor market over the next six months, the Conference Board reported on Tuesday.
The Consumer Confidence Index fell from a downwardly revised 90.2 in July, originally reported at 90.8, marking a seventh consecutive monthly decline. Economists surveyed by Reuters had expected the index to hold at 90.2. The Expectations Index, which reflects short-term outlooks, dropped 7.8%.
Inflation expectations for the next 12 months increased to 5.8% from 5.6% in July, signaling growing concern among consumers over rising prices. The Conference Board’s Chief Economist Dana Peterson attributed the decline to deteriorating views on business conditions and the labor market.
The August reading represents the weakest consumer sentiment since January, reversing a marginal improvement in households’ assessment of the current situation observed in July. The data underscores rising caution among consumers amid evolving economic conditions.
