U.S. Consumer Confidence Shows Modest Deterioration In August

(RTTNews) - Reflecting a deterioration in consumer expectations, the Conference Board released a report on Tuesday showing a modest decrease in consumer confidence in the month of August.

The Conference Board said its consumer confidence index dipped to 89.4 in August from a downwardly revised 90.2 in July.

Economists had expected the consumer confidence index to edge down to 90.1 from the 90.8 originally reported for the previous month.

The modest decrease by the headline index came as the expectations index tumbled to 68.2 in August from 74.0 in July.

However, the slump by the expectations was largely offset by an increase by the present situation index, which jumped to 121.2 in August from 114.4 in July.

"Consumer appraisals of current business conditions were mildly positive," said Dana M Peterson, Chief Economist, The Conference Board. "Perceptions of the current labor market improved, reversing three months of moderate decline."

She added, "Looking ahead, consumers were more pessimistic about business conditions and the labor market over the next six months. Expectations for household incomes moderated but remained optimistic overall."

On Friday, the University of Michigan is scheduled to release its revised reading on consumer sentiment in the month of August.

The University of Michigan's consumer sentiment index for August is expected to be unrevised from the preliminary reading of 51.0, which was down from 55.2 in July.