US consumer confidence unexpectedly improves in August
US consumer confidence unexpectedly improved in August, according to data from the Conference Board.
The Conference Board Consumer Confidence Index rose to 101.1 from 96.7 in July, beating expectations for a reading of 97.0 and hitting its best level since September 2015.
Meanwhile, the Present Situation index increased to 123.0 from 118.8 and the Expectations Index improved to 86.4 in August from 82.0.
“Consumer confidence improved in August to its highest level in nearly a year, after a marginal decline in July,” said Lynn Franco, director of economic indicators at the Conference Board.
“Consumers’ assessment of both current business and labour market conditions was considerably more favourable than last month. Short-term expectations regarding business and employment conditions, as well as personal income prospects, also improved, suggesting the possibility of a moderate pick-up in growth in the coming months.”
Capital Economics said the rise in the Conference Board measure of consumer confidence to an eleven-month high “leaves the index at a healthy level and suggests that real consumption growth will remain robust in the third quarter. It also implies that the looming presidential election is having very little impact on consumer sentiment”.