After reporting decreases in U.S. consumer confidence for three straights months, the Conference Board released a report on Tuesday showing consumer confidence rebounded by more than expected in the month of August.
The Conference Board said its consumer confidence index jumped to 103.2 in August from a downwardly revised 95.3 in July.
Economists had expected the consumer confidence index to climb to 97.4 from the 95.7 originally reported for the previous month.
The report showed the present situation index improved to 145.4 in August from 139.7 in July, while the expectations index surged to 75.1 from 65.6.
“The Present Situation Index recorded a gain for the first time since March,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “The Expectations Index likewise improved from July’s 9-year low, but remains below a reading of 80, suggesting recession risks continue. Concerns about inflation continued their retreat but remained elevated.”
She added, “Meanwhile, purchasing intentions increased after a July pullback, and vacation intentions reached an 8-month high. Looking ahead, August’s improvement in confidence may help support spending, but inflation and additional rate hikes still pose risks to economic growth in the short term.”
Revised data released by the University of Michigan last Friday showed consumer sentiment in the U.S. improved by much more than previously estimated in the month of August.
The report showed the consumer sentiment index for August was upwardly revised to 58.2 from the previously reported 55.1. Economists had expected the index to be upwardly revised to 55.2.
With the much bigger than expected upward revision, the consumer sentiment index is well above the final July reading of 51.5.
Source: Read Full Article