Perhaps it’s the continuing rise in gas prices, the war in the Middle East, even the uncovered terrorist plot in London which in turn made air travel more of a hassle than before with tightened security have contributed to the decline of consumer confidence, making it the lowest level this year.

According to Lynn Franco, Director of The Conference Board Consumer Research Center, the ‘less favorable business conditions coupled with a less favorable job scenario have resulted in the largest one month decline in confidence since Hurricane Katrina last year.”

Consumers have grown increasingly more pessimistic about the short-term outlook. The Present Situation Index decreased to 123.4 in August from 134.2 in July The Expectations Index declined to 83.8 from 88.9 last month.

Consumers' outlook for the next six months turned more negative in August. Those anticipating business conditions to worsen increased to 12.9 percent from 10.9 percent. Those expecting business conditions to improve edged down to 15.9 percent from 16.1 percent.

The outlook for the labor market was also less favorable. Those expecting more jobs to become available in the coming months decreased to 14.0 percent from 14.3 percent in July. Those expecting fewer jobs increased to 18.3 percent from 16.5 percent.

The proportion of consumers anticipating their incomes to increase in the months ahead declined to 17.7 percent from 18.3 percent.

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