Consumer Confidence Declines Slightly, Short-term Outlook Hits Highs

(WASHINGTON, DC) Consumer confidence was relatively unchanged in August, following an increase one month earlier. Lynn Franco, Senior Director of Economic Indicators at The Conference Board says Consumers’ assessment of current conditions improved further, and the Present Situation Index is now at its highest level in nearly 19 years. Expectations cooled moderately, but overall remain strong. While other parts of the economy may show some weakening, consumers have remained confident and willing to spend. However, if the recent escalation in trade and tariff tensions persists, it could potentially dampen consumers’ optimism regarding the short-term economic outlook. The current outlook for the labor market was also slightly less positive. The proportion expecting more jobs in the months ahead decreased marginally, while those anticipating fewer jobs increased. Regarding their short-term income prospects, the percentage of consumers expecting an improvement decreased while the proportion expecting a decrease declined.