US consumer confidence edged lower in August, with Conference Board Consumer Confidence Index falling from 90.2 to 89.4, marking a second consecutive monthly decline. Headline weakness masked a sharp divergence between consumers’ views of present conditions and future outlook. Present Situation Index rose from 114.4 to 121.2, reversing three months of declines, while Expectations Index fell from 74.0 to 68.2.
Consumers became more positive about current business and labor-market conditions, but considerably more cautious about next six months. Conference Board said perceptions of current labor market improved, while expectations for future business conditions and employment deteriorated. Household income expectations also moderated, although they remained positive overall.
Inflation concerns edged higher at the same time. Both average and median 12-month inflation expectations increased slightly in August, while 61.3% of consumers expected interest rates to rise over coming year, down from 62.0% in July. Overall, survey points to a consumer that feels somewhat better about conditions today but increasingly uneasy about what comes next, leaving headline confidence under pressure despite improvement in current assessments.
Data Summary
| Indicator | August 2026 | July 2026 | Change |
|---|---|---|---|
| Consumer Confidence Index | 89.4 | 90.2 | -0.8 |
| Present Situation Index | 121.2 | 114.4 | +6.8 |
| Expectations Index | 68.2 | 74.0 | -5.8 |
| Expecting Higher Interest Rates, 12M | 61.3% | 62.0% | -0.7 ppt |
Key Takeaways
- US Consumer Confidence Index fell from 90.2 to 89.4 in August, marking a second consecutive monthly decline.
- Headline weakness masked a sharp divergence between current conditions and future expectations.
- Present Situation Index rose from 114.4 to 121.2, reversing three months of declines as consumers became more positive about business and labor-market conditions.
- Expectations Index fell from 74.0 to 68.2, showing greater pessimism about business conditions and labor market over next six months.
- Household income expectations moderated but remained positive overall.
- Average and median 12-month inflation expectations edged higher, while share expecting higher interest rates slipped from 62.0% to 61.3%.
- Overall message is mixed: consumers feel better about economy today, but confidence in what comes next is deteriorating.
