US consumer confidence fell sharply and by more than expected in August, figures from the Conference Board showed on Tuesday.
The Conference Board consumer confidence index declined in August to 106.1 from a downwardly revised 114.0 in July, and below expectations of around 116.
The present situation Index, based on consumers’ assessment of current business and labor market conditions, fell to 144.8 (from 153.0) while the expectations index, based on consumers’ short-term outlook for income, business, and labor market conditions, declined to 80.2 in August, reversing July’s sharp uptick to 88.0.
Expectations were just above 80, the level that historically signals a recession within the next year, the report showed.
“Consumer confidence fell in August 2023, erasing back-to-back increases in June and July,” said Dana Peterson, chief economist at The Conference Board.
“August’s disappointing headline number reflected dips in both the current conditions and expectations indexes.
"Write-in responses showed that consumers were once again preoccupied with rising prices in general, and for groceries and gasoline in particular," she added.