US consumer confidence edges lower in August

(Sharecast News) - US consumer sentiment edged lower in August, according to the Conference Board, with fresh concerns around inflation and job prospects weighing on expectations. While views on current business conditions improved slightly, the overall tone of the report pointed to growing caution among households.

The Conference Board's consumer confidence index fell by 1.3 points in August to 97.4, reversing July's upwardly revised print, with the present situation index dropping by 1.6 points to 131.2, and the expectations index slipping 1.2 points to 74.8 - below the 80 threshold typically associated with recession risk.

Inflation expectations rose to 6.2%, up from 5.7% in July, driven by increased references to high prices for food and groceries, while the share of consumers expecting stock prices to rise fell to 47.4%, while those anticipating a decline climbed to 30.3%. Income expectations also deteriorated, with just 18.3% of those surveyed expecting to see an increase, down from 18.7% last month.

Purchasing plans for vehicles ticked higher, but discretionary spending intentions, particularly for entertainment and travel, declined.









Reporting by Iain Gilbert at Sharecast.com