The latest
report on consumer confidence by the Conference Board showed a slight increase in August after a decline in July.
The Consumer Confidence Index in August was at 81.5, up from 81.0 in July.
The report showed that consumer confidence increased
slightly in August, a result of improving short-term expectations. Consumers felt
moderately more upbeat about business, job and earning prospects. Income
expectations, which had declined sharply earlier this year with the payroll tax
hike, have rebounded to their highest level in two and a half years. Consumers’
assessment of current business and labor market conditions, on the other hand,
was somewhat less favorable than last month.
Consumers’ assessment of current conditions moderately
declined. Those stating business conditions are “good” decreased to 18.4
percent from 20.8 percent, while those stating business conditions are “bad”
was virtually unchanged at 24.8 percent. Consumers’ appraisal of the labor
market was mixed. Those claiming jobs are “plentiful” decreased to 11.4 percent
from 12.3 percent, while those claiming jobs are “hard to get” declined to 33.0
percent from 35.2 percent.
Consumers’ expectations, which had retreated in July,
increased in August. Those expecting business conditions to improve over the
next six months edged up to 20.1 percent from 19.9 percent. Those expecting
business conditions to worsen declined slightly to 11.1 percent from 11.3
percent.
Consumers’ outlook for the labor market remained upbeat.
Those anticipating more jobs in the months ahead increased to 17.6 percent from
16.7 percent, while those anticipating fewer jobs edged down to 17.3 percent
from 17.7 percent. The proportion of consumers expecting their incomes to
increase improved to 17.4 percent from 15.7 percent. Those expecting a decrease
declined slightly to 13.5 percent from 13.7 percent.