The Conference Board Consumer Confidence Index Increased in August

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The Conference Board Consumer Confidence Index, which had increased in July, improved further in August. The Index now stands at 122.9 (1985=100), up from 120.0 in July. The Present Situation Index increased from 145.4 to 151.2, while the Expectations Index rose marginally from 103.0 last month to 104.0.

The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was August 16.

“Consumer confidence increased in August following a moderate improvement in July,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ more buoyant assessment of present-day conditions was the primary driver of the boost in confidence, with the Present Situation Index continuing to hover at a 16-year high (July 2001, 151.3). Consumers’ short-term expectations were relatively flat, though still optimistic, suggesting that they do not anticipate an acceleration in the pace of economic activity in the months ahead.”

Consumers’ appraisal of current conditions improved further in August. Those saying business conditions are “good” increased from 32.5% to 34.5%, while those saying business conditions are “bad” moderated from 13.5% to 13.1%. Consumers’ assessment of the labor market was also more upbeat. Those stating jobs are “plentiful” rose from 33.2% to 35.4%, while those claiming jobs are “hard to get” decreased from 18.7% to 17.3%.

Consumers’ optimism about the short-term outlook was relatively flat in August. The percentage of consumers expecting business conditions to improve over the next six months decreased from 22.4% to 19.6%, but those expecting business conditions to worsen declined from 8.4% to 7.3%.

Consumers’ outlook for the labor market was also mixed. The proportion expecting more jobs in the months ahead declined from 18.5% to 17.1%, while those anticipating fewer jobs decreased marginally from 13.2% to 13.0%. Regarding their short-term income prospects, the percentage of consumers expecting an improvement increased moderately from 20.0% to 20.9%, while the proportion expecting a decline decreased from 9.5% to 7.8%.

About The Conference Board

The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. Winner of the Consensus Economics 2016 Forecast Accuracy Award (U.S.), The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States.  

About Nielsen

Nielsen Holdings plc is a global performance management company that provides a comprehensive understanding of what consumers watch and buy. Nielsen's Watch segment provides media and advertising clients with Total Audience measurement services for all devices on which content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry's only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen also provides its clients with analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries, covering more than 90 percent of the world’s population.