The US consumer confidence index fell to its lowest level in seven months in August. According to data from the Conference Board, the indicator dropped to 89,4 points, the lowest since January.
In July, the index, based on revised data, stood at 90,2 points. Economists polled by Reuters had expected this level to hold, although the initial report had indicated 90,8.
The decline was mainly due to a drop in the expectations index by 7,8%. This offset the first improvement in households' assessment of current conditions in four months.
"Consumers have become more pessimistic about business conditions and the labor market over the next six months," noted Dana Peterson, chief economist at the Conference Board.
The index measuring the difference in job assessments, reflecting the gap between those who say jobs are plentiful and those who say they are hard to get, rose for the first time in three months. In July, it was at its lowest level in more than five years.
Inflation expectations for the next 12 months rose to 5,8% from 5,6% in July. What does this mean for the Federal Reserve's future decisions?
The Conference Board survey has traditionally served as one of the key indicators of American consumer sentiment and influences forecasts for spending and economic growth.
