US consumer confidence fell in August amid a decline in the expectations index, with a "more pessimistic" outlook for business conditions and the labor market ahead, the Conference Board said Tuesday.
The consumer confidence index dropped to 89.4 this month from July's reading of 90.2, which was the consensus in a Bloomberg survey.
"Consumer confidence moderated slightly in August for a second consecutive month," Conference Board Chief Economist Dana Peterson said. "Perceptions of the current labor market improved, reversing three months of moderate decline."
The expectations measure -- which accounts for short-term outlooks for income, business, and job markets -- dropped 5.8 points sequentially to 68.2 in August. The present situation index -- which reflects consumers' assessment of current business and labor conditions -- rose 6.8 points to 121.2, following three consecutive monthly drops, the Conference Board survey showed.
"Looking ahead, consumers were more pessimistic about business conditions and the labor market over the next six months," Peterson said. "Expectations for household incomes moderated, but remained optimistic overall."
Earlier this month, official data showed US employment unexpectedly fell in July amid a marked decline in government payrolls.
Consumers' average and median one-year inflation expectations were "slightly more elevated" this month, the Conference Board said Tuesday. About 61% of consumers expected higher interest rates over the next 12 months in August, down from 62% last month, according to the report.
Earlier this month, a University of Michigan survey showed US consumer sentiment fell in August after two straight monthly gains amid continued inflation concerns, while year-ahead price growth expectations rose.
