After three consecutive monthly declines, consumer confidence in the United States rebounded more than expected in August, with vacation intentions rising to an eight-month high, a potential positive signal for consumer spending.
The Conference Board reported on Tuesday that its consumer confidence index increased to 103.2 in August from 95.3 in July. Reuters polled economists, who predicted the index would rise to 97.7.
The survey’s present situation index, which is based on consumers’ assessments of current business and labor market conditions, was released today.
jumped to 145.4, up from 139.7 in July. Its expectations index rose to 75.1 from 65.6 last month, based on consumers’ short-term outlook for income, business, and labor market conditions.
“After a July pullback, purchasing intentions increased, and vacation intentions reached an 8-month high,” said Lynn Franco, senior director of economic indicators at the Conference Board in Washington. “While August’s increase in confidence may help support spending, inflation and further rate hikes remain risks to economic growth in the short term.”
