US Consumer Confidence Edged Down Slightly in August – Expectations for the future became more pessimistic, offsetting improved assessments of the present situation. The Conference Board Consumer Confidence Index decreased by 0.8 points to 89.4 (1985=100) in August, down from 90.2 in July. The Present Situation Index based on consumers’ assessment of current business and labor market conditions rose by 6.8 points to 121.2, following three months of consecutive decline. The Expectations Index based on consumers’ short-term outlook for income, business, and labor market conditions fell by 5.8 points to 68.2. The survey period for this month’s preliminary results was August 3–16. “Consumer confidence moderated slightly in August for a second consecutive month,” said Dana M Peterson, Chief Economist, The Conference Board. “The Expectations Index slipped further into negative territory, which was offset by a moderate rise in the Present Situation Index after declining in the past three months. Consumer appraisals of current business conditions were mildly positive. Perceptions of the current labor market improved, reversing three months of moderate decline. Looking ahead, consumers were more pessimistic about business conditions and the labor market over the next six months. Expectations for household incomes moderated but remained optimistic overall.” Consumers’ write-in responses on factors affecting the economy were slightly more pessimistic in August. References to prices in general and oil and gas specifically remain elevated. Comments about war/conflict, food/groceries, trade, and jobs rose in August. The Present Situation Index improved in August. Net views of current business conditions the share saying conditions are “good” versus “bad” rose slightly by 0.1 ppt to +1.3%. Perceptions of current employment conditions improved significantly, with the labor market differential the share of consumers saying jobs are “plentiful” minus the share saying jobs are “hard to get” rising by 4.8 ppts to +7.5%. This increase was largely driven by more consumers reporting that jobs are “plentiful” in August, while those saying jobs are “hard to get” declined. The Expectations Index declined in August. All three of its components deteriorated with net expectations for business conditions dipping by 2.5 ppts to –6.3%. Net expectations for labor market also softened, by 2.6 ppts, to –11.5%. Net expectations for household income fell by 3.1 ppts but remained in positive territory at +3.8%. On a six-month moving average basis, confidence across all age groups trended down slightly, remaining highest among consumers under 35. By income, confidence was mixed, but generally higher-income groups were more optimistic. By generation, confidence for Gen Z remained the highest, followed closely by Millennials on a six-month moving average basis. The three oldest generations Generation X, Baby Boomer, and Silent Generation trailed in confidence by a wider margin. By political affiliation, confidence among Independents and Republicans softened while Democrats were somewhat more positive in August.