Consumer confidence in the U.S. saw a substantial deterioration in the month of August, according to a report released by the Conference Board on Tuesday.
The Conference Board said its consumer confidence index tumbled to 113.8 in August from a downwardly revised 125.1 in July.
Economists had expected the consumer confidence index to drop to 123.0 from the 129.1 originally reported for the previous month.
With the bigger than expected decrease, the index slumped to its lowest level since hitting 95.2 in February of 2021.
“Concerns about the Delta variant-and, to a lesser degree, rising gas and food prices-resulted in a less favorable view of current economic conditions and short-term growth prospects,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.
She added, “While the resurgence of COVID-19 and inflation concerns have dampened confidence, it is too soon to conclude this decline will result in consumers significantly curtailing their spending in the months ahead.”
The report also showed the present situation index slid to 147.3 in August from 157.2 in July, while the expectations index fell to 91.4 from 103.8.