US consumer confidence fell to 89.4 in August, its lowest since January, driven by pessimism about jobs, income, and business conditions.
Macro & Markets ·
The Conference Board Consumer Confidence Index dropped 0.8 points to 89.4 in August, marking its lowest reading since January and the second-lowest level since April 2025. The decline was primarily driven by a sharp 5.8-point fall in the Expectations Index, which reached 68.2—also its lowest since January—as households expressed growing pessimism about future job and income prospects along with reduced optimism regarding business conditions ahead.
The weakness reflects multiple pressures on American consumers, including elevated gasoline prices, broader cost-of-living strains, and a slowdown in hiring activity. These headwinds outweighed a countervailing gain in the Present Situation Index, which rose 6.8 points to 121.2—its highest level since May—after three consecutive monthly declines, suggesting some near-term resilience in how households assess current economic conditions.
The divergence between present and future sentiment indicates households remain cautious about the economic outlook despite relative stability in their immediate circumstances. How long the Present Situation Index can sustain gains while forward-looking indicators deteriorate remains uncertain.