U.S. consumer confidence edged lower in August, with the Conference Board Consumer Confidence Index slipping from 90.2 to 89.4 for a second straight monthly decline. The headline drop masked a pronounced split between households’ assessment of the present and their outlook for the months ahead. The Present Situation Index climbed from 114.4 to 121.2, reversing three consecutive months of deterioration, while the Expectations Index tumbled from 74.0 to 68.2.
Consumers grew more upbeat about current business and labor-market conditions but turned markedly more cautious about the next six months. The Conference Board noted that perceptions of the present labor market improved, yet expectations for future business conditions and employment deteriorated. Household income expectations also moderated, though they remained in positive territory overall.
Inflation concerns crept higher simultaneously. Both average and median 12‑month inflation expectations rose slightly in August, while the share of consumers anticipating higher interest rates over the coming year eased to 61.3% from 62.0% in July. The survey paints a mixed picture: households feel somewhat better about the economy today, but confidence in what lies ahead is eroding, keeping the headline index under pressure despite the 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
- The U.S. 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 grew more positive about business and labor-market conditions.
- Expectations Index fell from 74.0 to 68.2, signaling greater pessimism about business conditions and the labor market over the next six months.
- Household income expectations moderated but remained positive overall.
- Average and median 12‑month inflation expectations edged higher, while the share expecting higher interest rates slipped from 62.0% to 61.3%.
- The overall message is mixed: consumers feel better about the economy today, but confidence in what comes next is deteriorating.
