Consumer confidence in the United States declined more than forecast in August as was indicated by a report released by the U.S Conference board Consumer Confidence Index.
After a slight improvement in July, the index fell to 44.5 from a revised 59.2 in July. Expectations were for a drop to 52.0.
The results were based on data up to August 18th. The report shows that U.S. consumers grew significantly more pessimistic about the short-term outlook of the economic recovery in their country.
However, some say the data was skewed due to the time period the data was complied, which was during the U.S. debt ceiling discussions.
Consumers’ assessment of employment conditions was more pessimistic than last month. Those stating jobs are “hard to get” increased to 49.1 percent from 44.8 percent, while those believing jobs are “plentiful” declined to 4.7 percent from 5.1 percent.
The U.S. dollar dropped against the yen to 76.60 from 76.71 and USDCHF fell from 0.8186 to 0.8171 within a minute of the data at 14:00 GMT.
The data as a blow to investors risk appetite which had been high from yesterday as they believed the U.S. recovery wasn’t as bad as previously thought.