For the first time in five months, consumer confidence saw an upward tick for the month, according to the latest data from the Conference Board.
- M-O-M: Consumer confidence rose almost 8 full points to 103.2, up from 95.3 in July and larger than the 97.5 increase projected by economists.
- Y-O-Y: Consumer confidence was down ten points when compared to the same time one year ago when the index stood at 113.8.
Feeling better but not great. Consumers were feeling better about the current economy and the future economy, but still have a way to go before returning to the post-pandemic high of 129 in July of 2021…
- The Present Situation Index, which is based on consumers’ assessment of current business and labor market conditions, improved to 145.4 from 139.7 last month.
- The Expectations Index, which rates consumers’ short-term outlook for income, business, and labor market condition, increased to 75.1 from 65.6.
Lynn Franco, Senior Director of Economic Indicators at The Conference Board, said a positive turn was good news but we are not out of the woods yet as inflation continues to worry consumers. “The Present Situation Index recorded a gain for the first time since March. 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….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.”
Not alone. US consumer sentiment rose in early August to a three-month high on firmer expectations about the economy and personal finances, according to The University of Michigan’s preliminary sentiment index.