The U.S. Consumer Confidence Index unexpectedly dropped again in August, sparking fear that the last support for the U.S. economy is crumbling.

The CCI fell to 114.3 in August from 116.3 in July. Deepening concern over the health of the economy and the job market are being blamed for dragging the index to its lowest level since the spring of 1997.

“Not all was bad though, as there was a slight rise in the expectations index, although it remains well off its peak levels,” says BMO Nesbitt Burns. “The consumer view of the employment situation has also continued to worsen. The percent reporting “jobs hard to get” has risen to levels last observed during the turmoil of the financial crises in 1998. A similar pattern can be observed in the “jobs plentiful” data, as firms are cutting back on their hiring plans.”

“With data for two months of the third quarter now in, there is little evidence to suggest that a second-half turnaround is imminent, as the downturn in the job market is ongoing, and consumer confidence is slipping,” BMO concludes. “Also, since tax rebate cheques have had little impact on spending, the Fed seems poised to trim rates again in October.”