The Conference Board’s Consumer Confidence Index, which had increased in July, rebounded in August. The Index now stands at 105.6 (1985=100), up from 103.6 in July. The Present Situation Index increased to 123.65 from 119.3. The Expectations Index edged up to 93.7 from 93.2 last month.
“Consumers appear to be weathering the steady rise in gas prices quite well,” said Lynn Franco, director of The Conference Board’s Consumer Research Center. “In fact, consumers’ confidence in the current state of the economy, and particularly in the labor market, has propelled the Present Situation Index to its highest level in nearly four years (125.4 in September 2001). Expectations continue to suggest more of the same for the remainder of the year.”
Consumers’ overall assessment of ongoing conditions was considerably more favorable in August. Those claiming business conditions are “good’ increased to 29.8 percent from 28.7 percent. Those claiming conditions are “bad” slipped to 15.1 percent from 16.7 percent.
The employment picture was also upbeat. Consumers saying jobs are “hard to get” decreased to 23.2 percent from 23.8 percent, while those claiming jobs are “plentiful” rose to 23.5 percent from 22.9 percent.
For the first time since October 2001, consumers claiming jobs are plentiful outnumber those claiming jobs are hard to get.
The outlook for the labor market remained mixed. Those expecting more jobs to become available in the coming months increased to 16.6 percent from 15.6 percent.