RTTNews - Consumer confidence has rebounded in the month of August after seeing some deterioration in July, according to a report released by the Conference Board on Tuesday, with the increase partly due to an improvement in consumers' assessment of the job market.
The Conference Board said its consumer confidence index jumped to 54.1 in August from an upwardly revised 47.4 in July. Economists had been expecting the index to increase to 47.9 from the 46.6 originally reported for the previous month.
Lynn Franco, Director of the Conference Board Consumer Research Center said, Consumer confidence, which had posted back-to-back monthly declines, appears to be back on the mend.
The bigger than expected increase by the consumer confidence index was partly due to a slight improvement in consumers' assessment of current conditions, with the present situation index edging up to 24.9 in August from 23.3 in July.
While those claiming business conditions are bad fell to 45.6 percent from 46.5 percent, those claiming conditions are good also edged down to 8.6 percent from 8.9 percent.
At the same, consumers had a more favorable appraisal of the job market, as those saying jobs are plentiful rose to 4.2 percent from 3.7 percent and those saying jobs are hard to get fell to 45.1 percent from 48.5 percent.
The report also showed a notable improvement in consumers' assessment of the short-term outlook, with the expectations index rising to 73.5 in August from 63.4 in July. With the increase, the index rose to its highest level since December 2007.
Franco said, Consumers were more upbeat in their short-term outlook for both the economy and the job market in August, but only slightly more upbeat in their income expectations.
Consumers expecting an improvement in business conditions over the next six months rose to 22.4 percent from 18.4 percent, while those expecting conditions to worsen decreased to 15.8 percent from 19.0 percent.
The Conference Board said that the outlook for the labor market was also more upbeat, as those expecting more jobs in the months ahead rose to 18.4 percent from 15.5 percent and those expecting fewer jobs decreased to 23.3 percent from 26.1 percent.
The report also showed that consumers expecting an increase in their incomes increased slightly to 10.6 percent from 10.1 percent.
With consumer spending accounting for about two-thirds of total economic activity, the better than expected confidence data may generate some optimism about the outlook for the economy.
For comments and feedback: contact email@example.com