The Conference Board’s Consumer Confidence Index increased in August to its highest level in 18 years.
The Index now stands at 133.4, up from 127.9 in July.
“Consumers’ assessment of current business and labor market conditions improved further,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Overall, these historically high confidence levels should continue to support healthy consumer spending in the near-term.”
Consumers’ appraisal of current conditions improved further in August. Those stating business conditions are “good” increased from 38.1 percent to 40.3 percent, while those saying business conditions are “bad” declined from 10.3 percent to 9.1 percent.
Consumers’ appraisal of the labor market was also more favorable. Those claiming jobs are “plentiful” was virtually unchanged at 42.7 percent, while those claiming jobs are “hard to get” declined from 14.8 percent to 12.7 percent.
Consumers’ optimism about the short-term outlook bounced back in August. The percentage of consumers anticipating business conditions will improve over the next six months increased from 22.9 percent to 24.3 percent, but those expecting business conditions will worsen marginally rose, from 10.3 percent to 10.5 percent.
You can read the full report here.