US consumer confidence improves in August

The latest survey by The Conference Board showed on Tuesday a slight uptick in the US consumer confidence in during August. The overall consumer confidence index rose to 103.3 in August from 101.9 in July.

While consumers are generally more optimistic about the economy, concerns about the labor market remain. They expressed mixed feelings about current and future business conditions, and were less positive about job prospects.

Despite these mixed signals, inflation expectations have continued to decline, and consumers are less likely to predict a recession.

Overall, the slight improvement in consumer confidence is a positive sign for the US economy. However, it is important to monitor developments closely, as economic conditions can change rapidly.

“Overall consumer confidence rose in August but remained within the narrow range that has prevailed over the past two years,” stated Dana M. Peterson, Chief Economist at The Conference Board. “Consumers continued to express mixed feelings in August. Compared to July, they were more positive about business conditions, both current and future, but also more concerned about the labour market. Consumers’ assessments of the current labour situation, while still positive, continued to weaken, and assessments of the labor market going forward were more pessimistic. This likely reflects the recent increase in unemployment. Consumers were also a bit less positive about future income.”

Attribution: August 2024 Consumer Confidence Survey^®