NEW YORK — Consumer confidence dropped for the second consecutive month in August, a sign of growing consternation about a lack of jobs and unemployment, a research group said Tuesday.
The New York-based Conference Board said its Consumer Confidence Index eroded to 114.3, down from a revised 116.3 in July. The drop followed two consecutive gains in May and June and is the lowest level since the index hit 109.9 in April.
"The deteriorating U.S. job market dampened consumer spirits this month," said Lynn Franco, director of the Conference Board's Consumer Research Center. "The nation's employment and unemployment numbers now bear watching, since continued weakness could translate into slower consumer spending."
The news sent stocks lower. The Dow Jones industrial average, which had been down about 15 points, fell 96 points to 10,287 in midmorning trading.
The Conference Board index, based on a monthly survey of some 5,000 U.S. households, is considered a key indicator because consumer spending accounts for about two-thirds of the nation's economic activity. The index compares results to its base year, 1985, when it stood at 100.
The August decline reflects slightly diminished optimism about the current state of the economy, with 14.9 percent of consumers rating business conditions as "bad," compared to 14.6 percent in July.
Those worries were particularly evident in sentiments about jobs, with 15.9 percent of those surveyed saying jobs were "hard to get," up from 14.1 percent in July. The number who said jobs were "plentiful" fell from 35.6 percent to 33.4 percent.