Thursday, September 29, 2022

Consumer confidence up in August after three-month decline

The U.S. Consumer Confidence Index rebounded in August to end a three-month slide.

The monthly survey on consumer attitudes shows that the index now stands at 103.2, up from 95.3 last month, 98.4 in June and 106.4 in May, according to a press release from the index.

How consumers perceive the current business and labor market conditions also improved from July’s 139.7 to this month’s 145.4. And consumers’ short-term expectations for income, business and labor conditions increased from 65.6 to 75.1.  

“The Present Situation Index recorded a gain for the first time since March,” said Lynn Franco, senior director of Economic Indicators at The Conference Board, in a release. “The Expectations Index likewise improved from July’s 9-year low, but remains below a reading of 80, suggesting recession risks continue. Concerns about inflation continued their retreat but remained elevated.”

Ms. Franco also mentioned that consumers’ purchasing intentions increased after a July pullback, and vacation intentions reached an 8-month high.

“August’s improvement in confidence may help support spending, but inflation and additional rate hikes still pose risks to economic growth in the short term,” she continued.

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