Consumer Confidence 105.0 in August After 111.9 in July
The Conference Board U.S. consumer confidence index sank to 105.0 in August from a downward revised 111.9 in July (originally reported as 112.6). The August compared to a median market forecast of 104.0, and the move essentially retraced a July jump that was not expected at the time. With that said, we believe that further declines are likely given recent events in financial markets and the housing arena.
The expectations sub-index of the overall confidence index fell to 88.2 in August from 94.4 in July (June was 88.8).
The present situation sub-index declined to 130.3 in August from 138.3 in July (June was 129.9).
According to the Conference Board, A softening in business conditions and labor market conditions has curbed consumers’ confidence this month. In addition, the volatility in financial markets and continued sub-prime housing woes may have played a role in dampening consumers’ spirits. But, despite less favorable conditions and in spite of all the recent turmoil, consumers still remain confident. And, current Index levels suggest further economic growth in the months ahead.”
The proportion of those reporting jobs as plentiful fell to 27.5% in August from a revised 30.0% in July (originally reported as 30.5%). Earlier results for this key measure were 27.6% in June, 29.1% in May and 29.0% in April. The August result suggests that the payroll gain for the month will be a moderate one.