Consumer Confidence

The Conference Board’s index of consumer confidence bounced back in August to 53.5, from July’s upwardly revised reading of 51 (first reported as 50.4).  Economists had expected a reading of 50.7.  The measure of current conditions fell to 24.9 from 26.4.  However, the gauge of expectations for the next six months climbed to 72.5 from 67.5.  Respondents who expected more jobs to become available in the 6-months ahead increased to 14.6% from 14.2%, while those who felt jobs are hard to get now grew to 45.7% from 45.1%.  Only 10.6% of survey participants expect their incomes to increase over the next six months.

Summary:  Consumer confidence rebounded slightly in August and exceeded expectations of a further decline.  The underlying data reveal an interesting development as consumers grow more pessimistic about their current condition, yet hold out hope for a better tomorrow.  And yet, only 4% feel jobs are plentiful – the lowest reading of the year – while an ever increasing portion feel jobs are harder to get. 

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