U.S. Consumer Confidence Index Dips 1.3 Points in August

Consumer confidence in the U.S. edged slightly lower in August 2025, with The Conference Board's Consumer Confidence Index falling 1.3 points to 97.4, a level consistent with the past three months but reflecting a modest deterioration. The Present Situation Index dropped to 131.2, as consumers' appraisal of job availability declined for the eighth consecutive month, while the Expectations Index fell to 74.8, remaining below the threshold of 80 that often signals a recession ahead. This decline in sentiment follows weak jobs reports and sweeping new tariffs imposed by President Donald Trump, which have raised concerns about future economic conditions despite a recent lower-than-expected inflation report. The tariff issue and inflation, including rising food and grocery prices, continue to weigh on consumer perceptions, as reflected in increased references to tariffs and inflation in consumer responses. The firing attempt of Federal Reserve Governor Lisa Cook by President Trump, which she contested, adds to the economic uncertainty amid signs of a slowing economy with GDP growth below 2.5% for the first half of the year. Overall, while consumer confidence remains subdued, some optimism about future business conditions partially offsets fears about jobs and income.