US Consumer Confidence Preview: Some weakness could emerge in August
- The Conference Board survey expects Consumer Confidence in the US to remain subdued in August.
- The survey could shed further light on consumers’ views following the latest inflation and labour data.
- The US Dollar Index faces the next support around the 97.50 region.
The United States (US) will see the release of the August Conference Board’s Consumer Confidence Index on Tuesday. The report is a monthly survey conducted by the Conference Board that gathers information on consumer behaviour, expectations, purchasing intentions, and vacation plans.
The report contains several sub-readings: The Present Situation Index, which measures consumers' perceptions of current business and labour market conditions, and the Expectations Index, which measures the short-term outlook for income, business, and employment.
On the whole, Consumer Confidence is expected to register a mild decline to 96.4 in August after rising to 97.2 in July. In June, the Consumer Confidence Index fell to 95.2.
In July, the Present Index Situation dropped to 131.5, while the Expectations Index increased to 74.4.
How can the Conference Board's report affect the US Dollar?
The US Dollar Index (DXY) sold off on Friday exclusively in response to Federal Reserve (Fed) Chair Powell’s dovish remarks at the Jackson Hole Symposium.
Pablo Piovano, Senior Analyst at FXStreet, notes, “If the DXY slips below its multi-year low of 96.37 (July 1), the next major support lines up at 95.13 (February 4) and 94.62 (January 14).”
“On the flip side, the first obstacle is the August high at 100.25 (August 1); a decisive break there could clear the way to 100.54 (May 29) and then the May peak at 101.97 (May 12),” Piovano adds.
“Momentum indicators are also softening, as the Relative Strength Index (RSI) has eased to nearly 46, suggesting waning bullish momentum, while the Average Directional Index (ADX) is holding near 13, signalling a lack of strong directional trend”, he concludes.
Economic Indicator
Consumer Confidence
The Consumer Confidence index, released on a monthly basis by the Conference Board, is a survey gauging sentiment among consumers in the United States, reflecting prevailing business conditions and likely developments for the months ahead. The report details consumer attitudes, buying intentions, vacation plans and consumer expectations for inflation, labor market, stock prices and interest rates. The data shows a picture of whether or not consumers are willing to spend money, a key factor as consumer spending is a major driver of the US economy. Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish. Note: Because of restrictions from the Conference Board, FXStreet Economic Calendar does not provide this indicator's figures.
Read more.Last release: Tue Jul 29, 2025 14:00
Frequency: Monthly
Actual: -
Consensus: -
Previous: -
Source: Conference Board
Tariffs FAQs
Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.
Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.
There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.
During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.
Recommended Articles
