WASHINGTON (MarketWatch) — Consumers in August showed the most confidence in the economy in almost a year, buoyed by improved job prospects, a survey showed.
The consumer confidence index rose to 101.1 in August from a revised 96.7 in July, the Conference Board said Tuesday. That’s the highest level since September 2015 and it surpassed Wall Street expectations. Economists polled by MarketWatch had predicted a reading of 97.
“Short-term expectations regarding business and employment conditions, as well as personal income prospects, also improved, suggesting the possibility of a moderate pick-up in growth in the coming months,” said Lynn Franco, director of economic indicators at board.
Americans’ view the economy right now was the strongest since before the Great Recession. The present situation index, a measure of current conditions, climbed to 123 from 118.8 and hit the highest level since late 2007.
What consumers expect six months down the road, however, was less optimistic. The future expectations index edged up to 86.4 from 82, but it was still well below the post-recession high.
Americans have been consistently more worried about the near future compared to the present even though there’s been little change in the trajectory of the economy. The ongoing unease may be contributing to somewhat slower U.S. growth despite steady job gains, low unemployment, slightly higher wages and rising home sales.
