United States: Consumer confidence increases again in August
August 26, 2014
The Conference Board consumer confidence index jumped from a revised 90.3 points in July (previously reported: 90.9 points) to 92.4 points in August. The reading, which exceeded market expectations of a fall to 89.5 points, marked the highest point since October 2007.
August’s rise in confidence was driven by more positive consumer assessments of current economic conditions. However, there was a slight dip in consumers’ expectations regarding their personal finances over the next six months and their outlook on the future job market.
The director of the Board explained that, “[c]onsumer confidence increased for the fourth consecutive month as improving business conditions and robust job growth helped boost consumers’ spirits. Looking ahead, consumers were marginally less optimistic about the short-term outlook compared to July, primarily due to concerns about their earnings. Overall, however, they remain quite positive about the short-term outlooks for the economy and labor market.”
Author: Carl Kelly, Economist