Conference Board Says Consumer Confidence Rebounded in August

August 30, 2022 by Dan McCue
Conference Board Says Consumer Confidence Rebounded in August
(Photo by Dan McCue)

NEW YORK — Consumer confidence increased in August after three consecutive monthly declines, according to The Conference Board, the business membership and research group.

The organization’s latest Conference Board Consumer Confidence Index® now stands at 103.2 (1985=100), up from 95.3 in July. 

The Present Situation Index — based on consumers’ assessment of current business and labor market conditions — improved to 145.4 from 139.7 last month. 

The Expectations Index based on consumers’ short-term outlook for income, business and labor market conditions increased to 75.1 from 65.6.


“Consumer confidence increased in August after falling for three straight months,” said Lynn Franco, the board’s senior director of economic indicators, in a written statement. 

“The Present Situation Index recorded a gain for the first time since March,” Franco continued. “The Expectations Index likewise improved from July’s nine-year low, but remains below a reading of 80, suggesting recession risks continue. Concerns about inflation continued their retreat but remained elevated.”

“Meanwhile, purchasing intentions increased after a July pullback, and vacation intentions reached an eight-month high,” she said. “Looking ahead, August’s improvement in confidence may help support spending, but inflation and additional rate hikes still pose risks to economic growth in the short term.”


In terms of consumers’ appraisal of current business conditions in August:

  • 19.2% of consumers said business conditions were “good,” up from 16.3%.
  • 23.2% of consumers said business conditions were “bad,” down from 24.2%.

At the same time, consumers’ assessment of the labor market was mixed:

  • 48% of consumers said jobs were “plentiful,” down from 49.2%.
  • However, 11.4% of consumers said jobs were “hard to get,” down from 12.4%.

When asked about their expectations regarding business conditions over the next six months:

  • 17.5% of consumers expect business conditions will improve, up from 13.7%.
  • 22.3% expect business conditions to worsen, down from 26.2%.

And here, consumers were more optimistic about the short-term labor market outlook:

  • 17.4% of consumers expect more jobs to be available, up from 15.1%.
  • 19.3% anticipate fewer jobs, down from 21.1%.

Consumers were also more positive about their short-term financial prospects:


  • 15.8% of consumers expect their incomes to increase, up from 15.3%.
  • 14.5% expect their incomes will decrease, down from 15.5%.

The monthly Consumer Confidence Survey®, based on an online sample, is conducted for The Conference Board by Toluna, a technology company that delivers real-time consumer insights and market research through its technology, expertise and panel of over 36 million consumers. The cutoff date for the preliminary results was Aug. 23.

Dan can be reached at [email protected] and at https://twitter.com/DanMcCue.

A+
a-

In The News

Health

Voting

Economy

September 27, 2022
by Dan McCue
Consumer Confidence Improved Again in September

NEW YORK — Consumer confidence jumped to a five-month high this month as falling gas prices helped ease the pinch... Read More

NEW YORK — Consumer confidence jumped to a five-month high this month as falling gas prices helped ease the pinch of stubbornly persistent inflation. According to The Conference Board, the nonpartisan, member-driven think tank, its Consumer Confidence Index® increased in September for the second consecutive month. ... Read More

September 23, 2022
by Tom Ramstack
Senators Suggest More Incentives for Rechargeable Battery Development

WASHINGTON — If rechargeable batteries leading the switch away from gasoline-powered vehicles are impressive, electrical industry executives told a Senate... Read More

WASHINGTON — If rechargeable batteries leading the switch away from gasoline-powered vehicles are impressive, electrical industry executives told a Senate panel Thursday they haven’t seen anything yet. They say they are developing new technologies that will generate more electricity than lithium-ion batteries at a lower cost.... Read More

Fed Attacks Inflation With Another Big Hike and Expects More

WASHINGTON (AP) — Intensifying its fight against high inflation, the Federal Reserve raised its key interest rate Wednesday by a... Read More

WASHINGTON (AP) — Intensifying its fight against high inflation, the Federal Reserve raised its key interest rate Wednesday by a substantial three-quarters of a point for a third straight time and signaled more large rate hikes to come — an aggressive pace that will heighten the... Read More

High Inflation in Sight, Fed to Signal More Rate Hikes Ahead

WASHINGTON (AP) — Last month, when Federal Reserve Chair Jerome Powell spoke at an economic conference in Jackson Hole, Wyoming,... Read More

WASHINGTON (AP) — Last month, when Federal Reserve Chair Jerome Powell spoke at an economic conference in Jackson Hole, Wyoming, he issued a blunt warning: The Fed's drive to curb inflation by aggressively raising interest rates, he said, would "bring some pain" for Americans. When the... Read More

September 19, 2022
by Dan McCue
Study Finds US Can Gain Durable Competitive Advantage by Investing in Clean Energy

WASHINGTON — Strategic investments in six key “clean” technologies could yield “massive and lasting benefit” for the U.S. economy by... Read More

WASHINGTON — Strategic investments in six key “clean” technologies could yield “massive and lasting benefit” for the U.S. economy by mid-century, a new report says. The study, commissioned by Third Way, a D.C.-based think tank, and Breakthrough Energy, and researched by the Boston Consulting Group, focuses... Read More

September 15, 2022
by Dan McCue
Biden Calls Tentative Railway Deal ‘A Big Win for America’

WASHINGTON — President Joe Biden made a last-minute addition to his public schedule on Thursday, inviting railroad and union leaders... Read More

WASHINGTON — President Joe Biden made a last-minute addition to his public schedule on Thursday, inviting railroad and union leaders to the White House to celebrate their averting a nationwide strike that could have crippled the U.S. economy. Many of those invited to the Oval Office... Read More

News From The Well
scroll top