US consumer confidence fell by more than forecast in August as an uncertain economic outlook and lingering inflation curbed optimism.

The Conference Board's index fell to 106.1 this month from 114 in July, data out Tuesday showed. The median forecast in a Bloomberg survey of economists called for a reading of 116.

The group's gauge of current conditions fell to 144.8, the lowest since November. A measure of expectations -- which reflects consumers' six-month outlook -- dropped to 80.2.

A gauge of expected inflation a year ahead edged up to 5.8%. While consumers have been enjoying some relief from abating inflation, still-high prices continue to weigh on sentiment.

"Consumers were once again preoccupied with rising prices in general, and for groceries and gasoline in particular," Dana Peterson, chief economist at the Conference Board, said in a statement.

The yield on 10-year Treasury securities plunged and stocks extended gains after the release of the confidence numbers and a simultaneous Bureau of Labor Statistics report on July job openings, which also fell by more than forecast.

Though economists have been pushing out their recession forecasts on renewed economic momentum, many are still anticipating a downturn in the next year as consumers show signs of weakness under the surface. Some Americans are turning to credit cards to make ends meet, while others are cutting back on spending altogether.

Source : Bloomberg