U.S. Conference Board Consumer Confidence rose slightly in August, edging up to 97.4 from 97.2, beating expectations of 96.3. The modest gain masked underlying weakness, however, with Present Situation Index slipping to 131.2. Expectations Index fell to 74.8, staying well below the 80 threshold that typically signals a recession ahead.
The details showed consumers were less upbeat about the labor market, with job availability perceptions declining for an eighth straight month. At the same time, optimism about future income faded, even as expectations for future business conditions improved modestly. The Conference Board noted that consumer confidence has effectively plateaued at recent levels.
Inflation expectations added a note of caution, rising to 6.2% in August from 5.7% in July after three months of declines. While still below April’s 7.0% peak, the uptick underscores persistent concerns about price pressures.
