The Conference Board consumer confidence index increased in August, after three consecutive monthly declines. The index is now placed at 103.2, as opposed to 95.3 of July. The Current Situation Index, based on consumers’ assessment of current business and labor conditions, improved to 145.4 from 139.7 last month.
On the other hand, the expectations index, based on the short-term perspectives of consumers on the conditions of income, business and labor market, increased from 65.6 to 75.1.
“Consumer confidence rose in August after falling for three consecutive months,” said Lynn Franco, senior director of economic indicators at The Conference Board. “The Current Situation Index posted a gain for the first time since March. The Expectations Index also improved from July’s 9-year low, but remains below a reading of 75, suggesting that risks of recession continue. Inflation concerns continued to decline but remained elevated”.
“Meanwhile, buying intentions rose after a pullback in July, and holiday intentions hit an 8-month high. Looking ahead, August’s improved confidence may help support spending, but inflation and additional rate hikes still pose risks to economic growth in the near term,” Franco added.
According to The Conference Board, consumers’ assessment of current business conditions was more favorable in August:
– The 19.2% of consumers said that business conditions were “good”, compared to 16.3%.
– The 23.2% of consumers said that the commercial conditions were “bad”, compared to 24.2%.
Consumers’ evaluation of the labor market was mixed:
– The 48% of consumers said jobs were “abundant,” vs. 49.2%.
– However, the 11. 4% of consumers said jobs were “hard to get,” vs. 11.4%.
Expectations for within 6 months:
Consumers were more positive about the outlook for short-term business conditions in August:
– The 16. 5% of consumers expect business conditions to improve, compared to 13.7%.
– The 22.3% expect business conditions to worsen, compared to 26.2%.
Consumers were more optimistic about the prospects of the labor market in the short term:
– The 16.4% of consumers expect more stalls of work available, compared to 15.1%.
– The 19.3% anticipates less can These work, compared to 21.1%.
The consumers were more positive about their short-term financial prospects:
– The 15.8% of consumers expect their income to increase, compared to 15.3%.
The 14.5% expect their income to decrease, below 15.5%.
For more details of the report, enter here.
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