Consumer Confidence Takes a Hit
According to the monthly report on consumer confidence filed by the New York-based Conference Board, the Consumer Confidence Index for August declined to 105.0 from a revised reading of 111.9 in July, which was still a six-year high. Although the index was down, it was slightly stronger than the 104.5 that Wall Street analysts expected.
“A softening of business conditions and labor market conditions has curbed consumers’ confidence this month,” said Lynn Franco, director of The Conference Board Consumer Research Center, in a released statement. “In addition, the volatility in financial markets and continued subprime housing woes may have played a role in dampening consumers’ spirits.”
The Present Situation index, which measures how shoppers feel now about economic conditions, declined to 130.3 in August from 138.3 in July. The Expectations Index, which measures shoppers’ outlook for the next six months, fell to 88.2 from 94.4.