American consumer confidence reached its highest level since 2000 in August.
The Consumer Confidence Index rose to 133.4 from 127.9 in July, according to The Conference Board’s monthly survey. The Present Situation Index jumped six points to 172.2, and the Expectations Index rose five points to 107.6.
“Consumer confidence increased to its highest level since October 2000 (Index, 135.8), following a modest improvement in July,” said The Conference Board’s director of economic indicators, Lynn Franco. “Consumers’ assessment of current business and labor market conditions improved further. Expectations, which had declined in June and July, bounced back in August and continue to suggest solid economic growth for the remainder of 2018. Overall, these historically high confidence levels should continue to support healthy consumer spending in the near-term.”
The percentage of people who think business conditions are currently “good” increased, while the percentage of those saying conditions are “bad” decreased. Confidence in the labor market’s continued growth did appear tepid, as fewer consumers reported expecting more jobs to open up in the next few months. But those expecting a drop in jobs also declined, and more people in August expected their income to improve soon, despite the consistently slow growth of wages.
IN THE NEWS: ‘[WATCH] Trade War Threatens U.S. Economy’