[News] U.S. Consumer Confidence Edges up in August Despite Labor Market Concerns

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The U.S. Consumer Confidence Index slightly increased in August, reaching 103.3, as reported by the Conference Board on August 27.  This marks a small rise of 1.4 from the previous month.

Both the Present Situation Index and the Expectations Index improved in August, indicating that consumers remain optimistic for business activity. However, recent increases in the unemployment rate have dampened consumer optimism regarding the labor market, leading to a more pessimistic outlook for future labor conditions.

While overall consumer confidence rose, confidence among those with incomes below $25K declined, whereas those with incomes above $100K showed the highest levels of confidence. This is consistent with the findings from the University of Michigan’s July consumer sentiment survey, which highlighted that lower-income individuals feel the impact of inflation more acutely, contributing to their decreased confidence in economic prospects.

Additionally, consumer expectations for the stock market have shifted, with more people now believing that stock prices will decline over the next year, likely reflecting concerns over the recent rise in unemployment. Interestingly, consumers have not altered their expectations regarding the likelihood of a potential economic recession.