Americans are feeling less confident financially as summer comes to a close and high prices and interest rates weigh on their willingness to spend.The Conference Board, a business research group, said its consumer confidence index tumbled to 106.1 in August from a revised 114 in July. Analysts were expecting a reading of 116.
Consumers' view of current conditions fell to 144.8 from 153, and the index for future expectations slid to 80.2 from 88 in July. Readings below 80 for future expectations historically signals a recession within a year. The downturn in spending has showed up in the earnings reports of many high-profile retailers. Target recently reported its first quarterly sales decline in six years earlier this month, dragged down by cautious spending. Home Depot, the nation’s largest home improvement retailer, said that sales continue to decline, with a fall-off in big-ticket items like appliances and other things that often require financing.