Consumer Confidence Perks Up
The confidence of consumers in the U.S. increased more than expected this month as shoppers are more optimistic about future economic activity, giving the markets a small shot in the arm needed amid a recent wave of disappointing data.
The Conference Board, a private research group, reported Tuesday that its consumer confidence index rose to 53.5 in August from an upwardly revised 51.0 last month. The original reading for July was reported at 50.4.
Economists had been anticipating a reading of 51.0 for August.
"Expectations about future business and labor market conditions have brightened somewhat, but overall, consumers remain apprehensive about the future," says Lynn Franco, director of the Conference Board Consumer Research Center.
The reading for August is still well below the 90 or more level needed to signify that the economy is healthy. The index has not reached such a level since the recession began in December 2007.
The boost was attributable to the rise in the consumers’ outlook for the economy over the next six months. That gauge rose to 72.5 in August from 67.5 last month. However, the component that reads how the consumer feels about the current state of the economy fell to 24.9 from 26.4.
In the Jobs component of the index, only 3.8 percent of the respondents felt that Jobs were plentiful down from 4.4 percent in July, while those who view jobs as "hard to get" increased to 45.7 percent from 45.1 percent.
The report showed that 10.6 percent of consumers expect their income to increase in the next six months, while 16.1 percent are expecting a pay cut.
The markets reacted positively, as the Dow Jones industrial average rose 37.38 or 0.37 percent to 10,047.11 in midday market movement.
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The Conference Board, a private research group, reported Tuesday that its consumer confidence index rose to 53.5 in August from an upwardly revised 51.0 last month. The original reading for July was reported at 50.4.
Economists had been anticipating a reading of 51.0 for August.
"Expectations about future business and labor market conditions have brightened somewhat, but overall, consumers remain apprehensive about the future," says Lynn Franco, director of the Conference Board Consumer Research Center.
The reading for August is still well below the 90 or more level needed to signify that the economy is healthy. The index has not reached such a level since the recession began in December 2007.
The boost was attributable to the rise in the consumers’ outlook for the economy over the next six months. That gauge rose to 72.5 in August from 67.5 last month. However, the component that reads how the consumer feels about the current state of the economy fell to 24.9 from 26.4.
In the Jobs component of the index, only 3.8 percent of the respondents felt that Jobs were plentiful down from 4.4 percent in July, while those who view jobs as "hard to get" increased to 45.7 percent from 45.1 percent.
The report showed that 10.6 percent of consumers expect their income to increase in the next six months, while 16.1 percent are expecting a pay cut.
The markets reacted positively, as the Dow Jones industrial average rose 37.38 or 0.37 percent to 10,047.11 in midday market movement.
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