The numbers: A survey of U.S. consumer confidence rose in August for the first time in four months as gasoline prices fell, suggesting a slowdown in the economy that had stabilized toward the end of the summer
Economists polled by the Wall Street Journal had predicted the index would rise to 97.4 from 95.7 the previous month.
Big picture: Americans have had some relief from high inflation due to falling gas prices, but the outlook for the economy has worsened.
The Federal Reserve is raising interest rates to try to control the highest inflation in 40 years and promises more “pain” for consumers and businesses. And many economists think another recession is likely next year.
Higher rates increase the cost of borrowing and tend to cause consumers and businesses to spend less.
Key details: A measure of how consumers feel about the economy right now rose to 145.4 in August from a 15-month low of 139.7 the previous month, the Conference Board said on Tuesday without encouragement of profit
A similar confidence gauge looking ahead to six months jumped to 75.1 from 65.6, the highest level in four months.
Looking Ahead: “August’s improvement in confidence may help support spending, but inflation and additional rate hikes still pose risks to economic growth in the near term,” said Lynn Franco, director senior economic indicators council.
Market reaction: The Dow Jones Industrial Average DJIA, -0.81% and S&P 500 SPX, -1.02% both fell again in Tuesday’s trade.