The Conference Board said that the consumer confidence index increased from 120 in the prior month to 122.9 in August, reaching the second highest level since late 2000 and beating the estimates of 120.3 by Reuters.
In addition, the present situation index, which is a measure of current conditions, rose from 145.4 to 151.2 in August. The future-expectation index was up from 103 to 104 in the past month. According to Lynn France, the director of economic indicators for The Conference Board, the rise in future-expectations index indicated that consumer don’t expect an increase activity in the months ahead.
“Consumers’ more buoyant assessment of present-day conditions was the primary driver of the boost in confidence,” said Lynn France. But for the short-term “expectations were relatively flat, though still optimistic, suggesting that they do not anticipate an acceleration in the pace of economic activity in the months ahead.”
Those saying jobs are “plentiful” were up to 35.4% from 33.2%, and those stating jobs are hard to get dropped to 17.3%, which is the lowest since August 2001. In all, consumers’ assessment of the labor market was more positive.
According to the Conference Board, 34.5% of respondents described business conditions as “good”, which is the highest percentage since January.