US consumer confidence declined in August due to a softening in business conditions and labor market conditions, said an economic group yesterday.

The Conference Board Consumer Confidence Index, which had surged in July, shed all of its gain in August.

The Index now stands at 105, down from 111.9 in July. The Present Situation Index decreased to 130.3 from 138.3 in July. The Expectations Index declined to 88.2 from 94.4.

"A softening in business conditions and labor market conditions has curbed consumers' confidence this month. In addition, volatility in financial markets and continued sub-prime housing woes may have played a role in dampening consumers' spirits," said Lynn Franco, director of the Conference Board consumer research center.

"Despite less favorable conditions and in spite of all the recent turmoil, consumers still remain confident. And, current Index levels suggest further economic growth in the months ahead," he added.

The survey is based on a representative sample of 5,000 US households. The cutoff date for August's preliminary results was August 22.

Consumers' assessment of present-day conditions in August was less upbeat than in July while consumers were less positive in their appraisal of the labor market.