August Consumer Confidence Slips Even as Labor Market Views Improve

Consumer confidence declined in August, according to The Conference Board Consumer Confidence Index, as Americans grew more cautious about the economic outlook, even as their assessment of current conditions improved. The Consumer Confidence Index fell to 89.4, its lowest level in seven months, while the forward-looking Expectations Index declined 5.8 points to 68.2, moving further below the 80 threshold that has historically been associated with elevated recession risk.

The divergence suggests consumers remain relatively comfortable with current economic conditions but are becoming less confident about the months ahead. Labor market perceptions improved notably in August, with the gap between consumers reporting jobs as "plentiful" and those saying jobs are "hard to get" rising to 7.5%.

Inflation remains another source of concern. Consumers' average 12-month inflation expectation increased to 5.8%, while a majority continue to expect interest rates to rise over the next 12 months.

Despite the softer outlook, purchasing intentions have held up better than overall sentiment. Homebuying expectations declined modestly in August but remain on an upward trend, while auto purchase expectations remain strong. Consumers also continue to anticipate increased spending on services over the next six months, although intentions moderated from July.

The August data shows a more cautious economic backdrop. Consumers report employment and current conditions are adequate, but they are also becoming less confident that those conditions will hold.

NMMA will continue tracking consumer sentiment and its impact on the industry. Members are encouraged to leverage tools such as the Monthly Industry Data Summary and Marine Leadership Barometer to support planning 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].

This analysis was prepared by NMMA and Dr. Shawn DuBravac on behalf of NMMA.