The Conference Board reported on Tuesday that the U.S. Consumer Confidence Index significantly rebounded in August, driven by optimistic expectations that the worst period of economic recession is behind us.
The Conference Board is a private research organization, and its Consumer Confidence Index report is based on survey data from 5,000 households. The report indicates that the U.S. Consumer Confidence Index rose to 54.1 in August. The July Consumer Confidence Index was revised from the previously reported 46.6 to 47.4.
The market had an average expectation that the U.S. Consumer Confidence Index would rise to 47.9; economists surveyed by MarketWatch had an average estimate of 48.0.
Lynn Franco, Director of Economic Indicators at the Conference Board, stated, "The Consumer Confidence Index appears to have begun to recover."
The August report shows that consumers have become somewhat more optimistic about the current economic situation, but they are clearly more positive about the economy and their financial situation over the next six months.
The expectations index for August rose from 63.4 in July to 73.5, marking a high level since the U.S. entered recession in December 2007. The present situation index increased from 23.3 in July to 24.9.
Franco noted, "In August of this year, consumers have become more optimistic about the short-term outlook for the U.S. economy and job market, but there has only been a slight improvement in their income expectations. As long as income conditions continue to severely impact consumer confidence, consumer spending will remain constrained."
The August report indicates that the percentage of surveyed consumers who reported difficulty finding work decreased from 48.5% in July to 45.1%; the percentage of consumers who believe job opportunities are plentiful rose from 3.7% in July to 4.2%.
The percentage of consumers expecting more job opportunities in the next six months is 18.4%, while the percentage expecting job opportunities to continue to decline is 23.3%.
