WASHINGTON, Aug 31 (AFP) - Sluggish job growth month made Americans more cautious over the past month, sending a key measure consumer confidence tumbling, a survey by the Conference Board showed Tuesday.
The board's consumer confidence index skidded more than seven points to 98.2, down from a revised 105.3 in July, the private research group said.
"The slowdown in job growth has curbed consumers' confidence," said Conference Board consumer research chief Lynn Franco said in a statement.
"The level of consumer optimism has fallen off and caution has returned. Until the job market and the pace of hiring picks up, this cautious attitude will prevail."
The research group also revised downward its July index, which had been reported at a two-year high of 106.1
Economists see consumer confidence as a crucial indicator because it often impacts consumer spending, which accounts for two-thirds of US economic activity.
"Confidence fell and it should not have surprised anyone," said Joel Naroff at Naroff Economic Advisors.
"With gasoline prices sky high, the job situation not great, Iraq always in the news and the incessant political ads depressing everyone, it would have been amazing if the confidence measures rose."
But Naroff said one report is no reason to panic.
"Even when the indices were low, people still spent, so I dont think the Fed or investors should get too worked up about this number just yet," the economist added. "A few more months of large declines and yes, it might be time to panic."
Key components of the overall report were also lower. The expectations index, looking ahead to future conditions, dropped to 96.6 from 105.3. The present situation index fell to 100.7 from 106.4.
Those saying business conditions are "good" declined to 23.2 percent from 25.2 percent. Those claiming conditions are "bad" rose to 20.1 percent from 19.1 percent.
Consumers saying jobs are "plentiful" decreased to 18.1 percent from 19.7 percent. Those claiming jobs are "hard to get" was virtually unchanged at 25.8 percent, compared to 25.7 percent in July.
Those anticipating conditions to worsen increased to 8.8 percent from 7.1 percent. Those expecting business conditions to improve declined to 20.1 percent from 23.0 percent last month.
The employment outlook for the next six months was also less favorable. Consumers expecting fewer jobs increased to 15.4 percent from 13.5 percent. Those anticipating more jobs to become available fell to 16.2 percent from 19.5 percent.