Consumer Confidence Declines in August

The U.S. consumer’s confidence in the present situation has deteriorated drastically in response to the pandemic. The composite value of consumer confidence in August, reported by The Conference Board, was 84.8 with a three-month moving average (3MMA) of 91.6. The 3MMA has decreased from 130.4 in February. This indicator is quite volatile, therefore the moving average is used to reduce monthly variability.

“Consumer Confidence declined in August for the second consecutive month,” said Lynn Franco, Senior Director of Economic Indicators for The Conference Board. “The Present Situation Index decreased sharply, with consumers stating that both business and employment conditions had deteriorated over the past month. Consumers’ optimism about the short-term outlook, and their financial prospects, also declined and continues on a downward path. Consumer spending has rebounded in recent months, but increasing concerns amongst consumers about the economic outlook and their financial well-being will likely cause spending to cool in the months ahead.”