US Consumer Confidence Re-Plunges In August To 6 Year Lows

Consumer confidence was expected to rise modestly in August (as hope and a record high stock market trump reality once again), but instead it tumbled to 84.8 from a revised lower 91.7 in July (and well below expectations of a 93.0 print)…

• The Present Situation Index – based on consumers’ assessment of current business and labor market conditions – decreased sharply from 95.9 to 84.2.

• The Expectations Index – based on consumers’ short-term outlook for income, business, and labor market conditions – declined from 88.9 in July to 85.2 this month.

This is the lowest headline print since June 2014…

Source: Bloomberg

“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.”

– Lynn Franco, senior director of economic indicators at the Conference Board, said in a statement.

The share of consumers saying jobs are hard to get jumped to 25.2% from 20.1%. ..

Source: Bloomberg

About 30% of consumers said they expect better economic conditions six months from now, down from 31.6% in July.

The report points to a bumpy economic recovery as Americans grapple with high unemployment and uncertainty about future federal stimulus, with a new version of jobless aid just starting to reach Americans.

Once again the jaws of un-reality snap shut as confidence catches down to savings rates…

It appears the double-dip in confidence is here.