Consumer confidence in US sees notable rebound in August
Date
10/30/2024 5:51:34 AM
(MENAFN) Consumer confidence in the United States experienced a notable rebound in August, as reported by The Conference Board, based in New York. The consumer confidence index, which serves as a leading indicator of consumer spending and overall economic activity, surged by 9.5 points to reach 108.7. This figure significantly surpassed market expectations, which had anticipated a much lower reading of 99.5, while July's index was recorded at 99.2.
Dana Peterson, the chief economist at The Conference Board, commented on the findings, noting that this increase marked the strongest monthly gain since March 2021. However, she also pointed out that the index has not yet broken free from the narrow range that has characterized consumer sentiment over the past two years. Despite the increase, this indicates a continued uncertainty among consumers regarding the broader economic environment.
The survey results indicated a shift in consumer perceptions, as respondents expressed a considerably more optimistic outlook regarding future business conditions and showed a positive attitude toward anticipated income. Additionally, for the first time since July 2023, consumers exhibited cautious optimism about job availability, suggesting an improvement in their overall confidence regarding employment opportunities.
On a related note, the average inflation expectations for the next 12 months edged up to 5.3 percent in October, compared to 5.2 percent the previous month. This slight increase in inflation expectations may reflect ongoing concerns about rising prices, but the overall improvement in consumer confidence suggests that individuals are beginning to feel more secure about their financial prospects in the near future.
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