US consumer confidence experienced a slight downturn in August, reflecting increased apprehension among Americans regarding their employment prospects. According to recent data, The Conference Board’s gauge of sentiment decreased by 1.3 points, settling at 97.4. This figure follows an upward revision from the previous month. Economists surveyed by Bloomberg had estimated a median reading of 96.5.
A key indicator, measuring expectations for the next six months, showed a decline in August. Concurrently, the assessment of present conditions fell to its lowest level since April. These shifts suggest a cautious outlook among consumers, with growing unease about the immediate economic environment. The share of consumers reporting difficulty in finding jobs has risen for the second consecutive month, reaching its highest point since 2021. Meanwhile, the proportion indicating that jobs are plentiful remained relatively stable.
The labour market has become a focal point for Federal Reserve officials as they evaluate the potential for future interest rate adjustments. Federal Reserve chairman Jerome Powell indicated that an interest rate cut remains a possibility at the central bank’s upcoming policy meeting in September. His remarks, made at the Fed’s annual Jackson Hole conference, underscored concerns about emerging risks within the job market. Data from The Conference Board also indicated that the percentage of consumers anticipating higher interest rates in the coming year has increased, while fewer expect rates to decline.
