Consumer confidence falls in August

Americans are feeling worse about the economy than they have in a long time -- a fact that could have wide-reaching implications everywhere from Walmart to the White House.

Despite improving U.S. job and housing markets, consumer confidence nationally fell to the lowest level it's been since November 2011, according to The Conference Board, a private research group. The results are the latest swing in the index, which has been on a roller-coaster ride this year.

The index declined in January, rose in February and then posted four months of declines before registering an increase in July. August's reading indicates that the gains in the job and housing markets aren't big enough to put to rest Americans' economic fears.

That not only threatens to put a damper on retail sales for the back-to-school and winter holiday seasons -- the two biggest shopping periods of the year -- but it also could have an impact on how Americans vote in November's presidential election. No president has been re-elected when confidence was below a reading of 90, which indicates a healthy economy.

The New York-based Conference Board said its Consumer Confidence Index in August fell to 60.6, down from a revised 65.4 in July. The index now stands at the lowest it's been since November 2011 when the reading was at 55.2.

"This report is a little disturbing going into the fall," Mark Vitner, a Wells Fargo Securities senior economist, said. "Consumers are less optimistic about the future."

Elizabeth Dann, a May 2012 graduate of Georgetown Law School, says her confidence has soured as she struggles to find a job. Dann, 30, who is eight months pregnant and married to someone who is in finance, says she has been cautious about spending.

"I really saw law school as a way to ride out the recession," said the New Rochelle, N.Y., resident. "I was optimistic."