August Consumer Confidence Falls

U.S. consumer confidence in August fell by the most since the period immediately following Hurricane Katrina, the New York-based Conference Board said Tuesday.

The index dropped to a 105 reading from July’s revised 111.9 reading, the group said.

The index averaged 105.9 last year, and economists had forecast an August reading of 104, Bloomberg reported.

The survey’s present-conditions index fell to 130.3 from 138.3, while a gauge of expectations for the next six months dropped to 88.2 from 94.4.

The consumer confidence index is a predictor of consumer spending. When people are feeling less confident about the economy, they are less likely to spend money, which decreases demand for trucking services.

Every month the Conference Board surveys 5,000 households on general economic conditions, their employment prospects and spending plans.