Consumer Confidence Rockets Higher, but Timing Misses Latest Woes

The Consumer Confidence Index rose to 101.5 in August from 91.0 in July. A gain was seen in the Present Situation Index to 115.1 in August from 104.0 in July, and the Expectations Index rose to 92.5 in August from 82.3 in July.

Consumers’ views of current conditions were considerably more favorable. Those saying business conditions are “good” fell from 23.4% to 23.2%, and those claiming business conditions are “bad” fell from 18.2% to 17.6%.

Consumers were more positive about jobs. Those stating jobs are “plentiful” rose from 19.9% to 21.9%. Those claiming jobs are “hard to get” fell from 27.4% to 21.9%.

Consumers’ optimism about the short-term outlook also improved in August. Consumers expecting business conditions to improve over the next six months rose from 15.3% to 15.8%, and those expecting worse conditions fell from 10.3% to 8.3%.

Also, those anticipating more jobs in the coming months rose from 13.7% to 14.6%, while those expecting fewer jobs fell from 19.0% to 13.6%.

Consumers expecting their own income to rise fell from 17.0% to 16.2%. Those expecting a decline fell from 11.3% to 10.0%.

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The Conference Board said:

Consumer confidence rebounded in August, following a sharp decline in July. Consumers’ assessment of current conditions was considerably more upbeat, primarily due to a more favorable appraisal of the labor market. The uncertainty expressed last month about the short-term outlook has dissipated and consumers are once again feeling optimistic about the near future. Income expectations, however, were little improved.