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.August's swoon -- which has somewhat mirrored the stock market decline this month -- erased gains from June and July.
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. Confidence appeared to rebound late in the spring as inflation eased in the face of 11 interest-rate hikes by the Federal Reserve. But this month's downturn reflects consumer anxiety over spending on non-essential goods, particularly if they have to put it on a credit card with an elevated interest rate.
On Tuesday, Best Buy reported that its sales and profits slid in the second quarter as the nation's largest consumer electronics chain continues to wrestle with a pullback in spending on gadgets after Americans splurged during the pandemic.