US consumer confidence hits seven-month low

United States consumer confidence fell for a second consecutive month in August, reaching its lowest level in seven months. According to The Conference Board, the Consumer Confidence Index dropped to 89.4.

The decline was primarily driven by the Expectations Index, which measures short-term outlooks for income, business, and labor conditions. This index fell 5.8 points to 68.2, remaining below the historical threshold of 80 that typically signals a recession within the following year. Consumers expressed increased pessimism regarding business conditions and the job market over the next six months.

In contrast, the Present Situation Index, which reflects current views of business and labor conditions, rose 6.8 points to 121.2, marking its first improvement in four months. While current perceptions of the labor market showed signs of recovery, elevated gas prices and concerns over future economic stability continue to weigh on household sentiment.