NEW YORK — U.S. consumer confidence slipped in August, with households showing greater caution toward spending on discretionary goods and travel, according to The Conference Board’s latest Consumer Confidence Survey®.
The overall index dropped to 97.4, down from July’s revised 98.7, as concerns about jobs and income weighed on sentiment. While consumers’ views of business conditions improved slightly, the report signaled softening demand in key retail categories.
Buying plans for cars rose in August, but intentions to purchase homes, TVs, and tablets declined. Consumers also showed a lower willingness to spend on discretionary services, such as dining out and entertainment. Meanwhile, vacation plans fell for the second straight month, with both domestic and international travel intentions easing.
At the same time, interest in non-discretionary purchases, including washers, dryers, car maintenance, and financial services, ticked up, reflecting consumers’ prioritization of essentials over luxuries.
“Consumer confidence dipped slightly in August but remained at a level similar to those of the past three months,” said Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board. “The present situation and the expectation components both weakened. Notably, consumers’ appraisal of current job availability declined for the eighth consecutive month, but stronger views of current business conditions mitigated the retreat in the Present Situation Index. Meanwhile, pessimism about future job availability inched up and optimism about future income faded slightly. However, these were partly offset by stronger expectations for future business conditions.”
Inflation expectations rose to 6.2% for the next 12 months, reversing three months of easing and underscoring cost pressures still felt at the grocery store and beyond.
For retailers, the shift highlights uneven spending patterns: while auto dealers may benefit from increased car-buying intentions, electronics, travel, and leisure companies could face a tougher environment as they head into the fall.
