Consumer confidence in the US slipped in August after two consecutive months of increases as employment grains have slowed, the Conference Board reported today. The index now stands at a reading of 106.1 (1985=100) from a downwardly revised 114.0 in July.

“Consumer confidence fell in August 2023, erasing back-to-back increases in June and July,” Dana Peterson, chief economist at The Conference Board, said in a press statement. “August’s disappointing headline number reflected dips in both the current conditions and expectations indexes.”

The Present Condition Index — based on consumers’ assessment of current business and labor market conditions — fell to a reading of 144.8 (1985=100) from 153.0 reported in July.

The Expectations Index — based on consumers’ short-term outlook for income, business and labor market conditions — declined to a reading of 80.2 (1985=100) in August, reversing July’s sharp uptick to 88.0. The Expectations Index was marginally above 80 — the level that signals a recession within the next year.

“Assessments of the present situation dipped in August on receding optimism around employment conditions: Fewer consumers said jobs are ‘plentiful,’ and more said jobs are ‘hard to get,’” Peterson said. “Hard data confirm that employment gains have slowed, overall wage increases are less generous compared to a year ago, and the average number of weeks of unemployment is ticking upward.”

Peterson noted August’s decline in consumer confidence was most notable among consumers with household incomes of $100,000 or more as well as those earning less than $50,000.

Consumers’ appraisal of the labor market deteriorated in August, as 40.3% of consumers said jobs were plentiful, down from 43.7% in July. In addition, 14.1% of consumers said jobs were hard to get, up from 11.3%.

Also, consumers’ assessment of the short-term labor market outlook was less favorable in August. While 16.7% of consumers expect more jobs to be available, down slightly from 16.6% in July, 18.0% anticipate fewer jobs, up from 15.6%.

Meanwhile, expectations for the next six months tumbled back near the recession threshold of 80, reflecting less confidence about future business conditions, job availability and incomes, according to Peterson.