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August US Consumer Confidence Falls on Decline in Expectations Reading

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The Conference Board's measure of consumer confidence fell to 89.4 in August from 90.2 in July, compared with the expectations for no change in a survey compiled by Bloomberg.

The present situation reading rose to 121.2 from 114.4, while the expectations reading decreased to 68.2 from 74.0.

The current assessment of both employment and business conditions rose in July.

"Looking ahead, consumers were more pessimistic about business conditions and the labor market over the next six months," said Dana Peterson, Chief Economist at The Conference Board. "Expectations for household incomes moderated but remained optimistic overall."

The monthly consumer confidence index from the Conference Board measures consumer sentiment in the current month, with the headline index a combination of the present situation and expectations for the near future. The report also includes the current and future assessments for business and employment conditions.

An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.

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