Consumer Confidence Rises to Highest in Almost 18 Years
Consumer confidence unexpectedly rose in August to the highest level since October 2000, according to a report Aug. 28 from the New York-based Conference Board, on improved assessments of the economy and the outlook.
The confidence index increased to 133.4 from 127.9 in July, exceeding all forecasts in a Bloomberg survey of economists.
The Conference Board’s present conditions measure rose to 172.2 in August, the highest since December 2000, from 166.1 in July.
Its consumer expectations gauge climbed to a six-month high of 107.6, from 102.4 in July.
The report showed a greater share of respondents anticipate purchasing big-ticket items such as homes, cars and major appliances within six months, which bodes well for the outlook for consumer spending. While a smaller share said that they expect employment to rise in coming months, more Americans were optimistic about pay gains.
The figures contrast with the University of Michigan’s consumer sentiment index, which fell this month to the lowest in almost a year amid less favorable views on purchasing big-ticket items and persistent concerns about trade tensions.
“These historically high confidence levels should continue to support healthy consumer spending in the near term,” Lynn Franco, director of economic indicators at the Conference Board, said in a statement.
Other details from the Conference Board:
- The share of consumers who said they expect better business conditions in next six months rose to 24.3% from 22.9%.
- The index of 12-month inflation expectations eased to 4.8% from the highest since 2016.
- The share of households that expect incomes to rise in the next six months increased to 25.5%, the highest since December 2000, from 20.4%.
- The share that said more jobs will be available in coming months eased to 21.7% from 22.6%.
With assistance by Kristy Scheuble
