US consumer confidence wanes with prices still high and signs of a cooling job market

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American consumers are feeling less confident as summer comes to a close as high prices and interest rates weigh on their willingness to spend

Americans are feeling less confident financially as summer comes to a close and high prices and interest rates weigh on their willingness to spend.

There were also signs Tuesday of cooling in what has been a very resilient U.S. jobs market.

The Conference Board, a business research group, said its consumer confidence index tumbled to 106.1 in August from a revised 114 in July. Analysts were expecting a reading of 116.

August's swoon — which has somewhat mirrored the stock market decline this month — erased gains from June and July.

The index measures both Americans’ assessment of current economic conditions and their outlook for the next six months. Both measures saw significant declines in August.

Consumers' view of current conditions fell to 144.8 from 153, and the index for future expectations slid to 80.2 from 88 in July. Readings below 80 for future expectations historically signals a recession within a year.

Consumer spending accounts for around 70% of U.S. economic activity, so economists and investors pay close attention to their mood to gauge how it may affect the broader economy.

Confidence appeared to rebound late in the spring as inflation eased in the face of 11 interest-rate hikes by the Federal Reserve. But this month's downturn reflects consumer anxiety over spending on non-essential goods, particularly if they have to put it on a credit card with an elevated interest rate.

The cost of every day, essential items also has consumers frustrated.

“Write-in responses showed that consumers were once again preoccupied with rising prices in general, and for groceries and