U.S. Consumer Confidence Index Edges Lower In August

(RTTNews) - A report released by the Conference Board on Tuesday showing a modest deterioration by consumer confidence in the U.S. in the month of August.

The Conference Board said its consumer confidence index dipped to 97.4 in August from an upwardly revised 98.7 in July.

Economists had expected the consumer confidence index to slip to 96.4 from the 97.2 originally reported for the previous month.

The report said the present situation index, which is based on consumers' assessment of current business and labor market conditions, also fell to 131.2 in August from 132.8 in July.

"Notably, consumers' appraisal of current job availability declined for the eighth consecutive month, but stronger views of current business conditions mitigated the retreat in the Present Situation Index," said Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board.

The Conference Board said the expectations index, which is based on consumers' short-term outlook for income, business, and labor market conditions, also dipped to 74.8 in August from 76.0 in July and remains below the threshold of 80 that typically signals a recession ahead.

"Pessimism about future job availability inched up and optimism about future income faded slightly," said Guichard. "However, these were partly offset by stronger expectations for future business conditions."

On Friday, the University of Michigan is scheduled to release its revised reading on consumer sentiment in the month of August.

The consumer sentiment index for August is expected to be unrevised from the preliminary reading of 58.6, which was down from 61.7 in July.