Consumer confidence was expected to rise modestly in August (as hope and a record high stock market trump reality once again), but instead it tumbled to 84.8 from a revised lower 91.7 in July (and well below expectations of a 93.0 print)...
The Present Situation Index – based on consumers’ assessment of current business and labor market conditions – decreased sharply from 95.9 to 84.2.
The Expectations Index – based on consumers’ short-term outlook for income, business, and labor market conditions – declined from 88.9 in July to 85.2 this month.
This is the lowest headline print since June 2014...
“The Present Situation Index decreased sharply, with consumers stating that both business and employment conditions had deteriorated over the past month. Consumers’ optimism about the short-term outlook, and their financial prospects, also declined and continues on a downward path. Consumer spending has rebounded in recent months but increasing concerns amongst consumers about the economic outlook and their financial well-being will likely cause spending to cool in the months ahead.”
- Lynn Franco, senior director of economic indicators at the Conference Board, said in a statement.
The share of consumers saying jobs are hard to get jumped to 25.2% from 20.1%. ..
About 30% of consumers said they expect better economic conditions six months from now, down from 31.6% in July.
The report points to a bumpy economic recovery as Americans grapple with high unemployment and uncertainty about future federal stimulus, with a new version of jobless aid just starting to reach Americans.
Once again the jaws of un-reality snap shut as confidence catches down to savings rates...
It appears the double-dip in confidence is here.