Consumer Confidence Slips in August
U.S. consumer confidence slipped in August, according to the latest report released yesterday by The Conference Board. The August Consumer Confidence Index® headline index fell 1.3 points to 97.4, down from 98.7 in July. The Present Situation Index declined to 131.2, while the Expectations Index dropped to 74.8—well below the 80-point threshold that historically signals recession risk.
Consumers reported more concern about tariffs and their impact on prices, particularly for groceries, along with reduced optimism around job availability and income prospects as recent data indicates a slowdown in job growth with employers adding fewer jobs than expected.
The report showed future purchasing plans varied by category, with intentions to buy cars and appliances ticking up, housing demand holding steady, and plans for electronics, vacations, and discretionary spending declining.
Declines across both present and future confidence indexes suggest households may become more hesitant to make large discretionary purchases, including boats. While the Federal Reserve is expected to consider cutting rates in September to support growth, consumers’ pessimism and cautious spending habits may limit the near-term impact of lower borrowing costs.
NMMA continues to monitor consumer sentiment and its implications for marine businesses. Members are encouraged to utilize resources such as the Monthly Industry Data Summary and quarterly Marine Leadership Barometer to guide decision-making and navigate evolving market dynamics.
For more economic updates and data-driven insights, visit nmma.org/statistics or contact the NMMA Business Intelligence team at [email protected].