United States: Consumer confidence rebounds in August
July 28, 2015
The Conference Board consumer confidence index jumped to 101.5 points in August from a revised 91.0 points in July (previously reported: 90.9 points). August’s result overshot market expectations of 94.0 points and was the largest monthly gain in seven months. Recent swings in the index suggest that consumers are constantly adapting their expectations for the economy in the face of developments both at home and abroad.
August’s large increase in confidence was driven by a significant improvement not only in consumers’ sentiment regarding current economic conditions and job market opportunities, but also their outlook on conditions in the next six months.
The director of the Board explained that, “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.”
Author: Carl Kelly, Economist