Consumer Confidence Climbs in August to Highest Level Since August 2022
Key Points
- The Conference Board Consumer Confidence Index rose to 103.3 in August, up from 101.9 in July.
- This is the highest level the index has reached since August 2022, before inflation began to take hold.
- Consumers are more optimistic about the future, with the Present Situation Index rising to 145.4 and the Expectations Index climbing to 73.2.
Details
The Conference Board Consumer Confidence Index measures consumer confidence in the U.S. economy. The index is based on a survey of 3,000 households and is conducted monthly. The index is divided into two sub-indices: the Present Situation Index and the Expectations Index. The Present Situation Index measures consumers' assessment of current economic conditions, while the Expectations Index measures consumers' outlook for the future.
The Present Situation Index rose to 145.4 in August, up from 142.8 in July. This is the highest level the index has reached since April 2022.
The Expectations Index climbed to 73.2 in August, up from 71.1 in July. This is the highest level the index has reached since June 2022.
What This Means for Consumers
The increase in consumer confidence is good news for businesses. Consumers are more likely to spend money when they are confident about the future. This could lead to an increase in economic growth.
However, it is important to note that consumer confidence can be volatile. It can be affected by a variety of factors, including the stock market, the unemployment rate, and gas prices. Therefore, it is important to monitor consumer confidence closely to see if it continues to improve.
Sources
- The Conference Board Consumer Confidence Index
- CNBC: Consumer confidence rises in August to highest level since August 2022
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