United States: Consumer confidence hits an 11-month high in August
August 30, 2016
After remaining virtually unchanged in July, consumer confidence hit an 11-month high in August. The consumer confidence indicator published by Conference Board jumped from 96.7 in July to 101.1 in August and overshot the 98.0 that analysts had expected. August’s print, which was the highest since September 2015, suggests that U.S. consumer spending will continue to be a key support for economic growth.
The survey result showed that both households’ expectations and assessment of the current economic situation improved substantially over the previous month. Lynn Franco, the Board’s Director of Economic Indicators and Surveys, stated that, “Short-term expectations regarding business and employment conditions, as well as personal income prospects, also improved, suggesting the possibility of a moderate pickup in growth in the coming month.” A notable result was the survey’s labor differential—the percentage of respondents saying that jobs are plentiful less those saying jobs are hard to get—improved to a post-crisis high of 2.6.
Author: Ricardo Aceves, Senior Economist