Consumer Confidence Increased in August to Highest Level in 18 Years

The Conference Board Consumer Confidence Index increased 5.4 points to 133.4 in August. The Present Situation Index increased 6.1 points to 172.2. The Expectations Index rose 5.2 points to 107.6.

“Consumer confidence increased to its highest level since October 2000 (Index, 135.8), following a modest improvement in July,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current business and labor market conditions improved further. Expectations, which had declined in June and July, bounced back in August and continue to suggest solid economic growth for the remainder of 2018. Overall, these historically high confidence levels should continue to support healthy consumer spending in the near-term.”

Consumers’ labor market outlook was mixed in August. The percentage of consumers expecting more jobs in the coming months declined 0.9 point to 21.7 percent, while the share of those anticipating fewer jobs also decreased, falling 1.1 points to 14.1 percent. Income expectations increased, as 25.5 percent of consumers expected their incomes to increase in coming months. The proportion expecting a decline fell from 9.4 percent to 7.0 percent.

Read the Conference Board release.

About Jack McCabe

Jack McCabe is a research associate in the Economic Policy and Research group at the ABA.
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