The Conference Board Consumer Confidence Index rose in August, following a modest increase in July. The Index now stands at 133.4 (1985=100), up from 127.9 in July. The Present Situation Index improved from 166.1 to 172.2, while the Expectations Index increased from 102.4 last month to 107.6 this month.
The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen. The cutoff date for the preliminary results was August 17.
“Consumer confidence increased to its highest level since October 2000 (Index, 135.8), following a modest improvement in July,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current business and labor market conditions improved further. Expectations, which had declined in June and July, bounced back in August and continue to suggest solid economic growth for the remainder of 2018. Overall, these historically high confidence levels should continue to support healthy consumer spending in the near-term.”
Consumers’ appraisal of current conditions improved further in August. Those stating business conditions are “good” increased to 40.3% from 38.1%, while those saying business conditions are “bad” declined to 9.1% from 10.3%. Consumers’ appraisal of the labor market was also more favorable. Those claiming jobs are “plentiful” was virtually unchanged at 42.7%, while those claiming jobs are “hard to get” declined to 12.7% from 14.8%.
Consumers’ optimism about the short-term outlook bounced back in August. The percentage of consumers anticipating business conditions will improve over the next six months increased to 24.3% from 22.9%, but those expecting business conditions will worsen marginally rose, to 10.5% from 10.3%.
Consumers’ outlook for the labor market was mixed. The proportion expecting more jobs in the months ahead decreased to 21.7% percent from 22.6%, while those anticipating fewer jobs also decreased, to 14.1% from 15.2%. Regarding their short-term income prospects, the percentage of consumers expecting an improvement rose to 25.5% from 20.4%, while the proportion expecting a decrease declined, to 7% from 9.4%.