Consumer Confidence Improved in August, Reaching 16-Year High

Paterniano Del Favero
Agosto 29, 2017

A customer stands in front of a wall of flat panel televisions at a Best Buy store June 19, 2007.

The Conference Board publishes its monthly Consumer Confidence Index reading Tuesday shortly after the market opens, and some strategists are expecting to see a pickup after a slight decline.

US consumers' confidence in the economy unexpectedly strengthened in August to their strongest level in five months, buttressed by optimism about current business conditions, a survey released on Tuesday showed.

Economists polled by MarketWatch had expected the index to rise to 122.5 in August from the initial July estimate of 121.1, which was cut to 120.

The latest confidence reading was strongest since 124.9 in March which was the highest since December 2000. Spending by households has contributed to gross-domestic-product growth in the first half of the year.

The Consumer Confidence Index jumped almost three points to 122.9, while the present situation index added almost six points to 151.2, near a 16-year high.

During the same period, the Consumer Price Index rose 1.3 percent, and average pre-tax income per consumer increased 7.2 percent to $74,664.

"Consumer confidence increased in August following a moderate improvement in July", said Lynn Franco, Director of Economic Indicators at The Conference Board.

Consumers' optimism about the short-term outlook was relatively flat in August.

The current assessment of the labor market improved somewhat, with a slightly higher share of respondents saying jobs are "plentiful" and slightly less saying jobs are "hard to get", the survey showed.

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