U.S. August Consumer Confidence - Firmer but labor market and inflation views lower
August consumer confidence is stronger in the headline at 103.3 from 101.9, reaching its highest level since February, though the detail shows a further deterioration in the labor market and a dip in inflation expectations.
The proportion seeing jobs as plentiful less those seeing them as hard to get fell to 16.4% from 17.1%, a seventh straight deterioration from 31.7% in January and consistent with the unemployment rate continuing to trend higher (though we are not convinced that August’s rate will rise further from July).
The one year inflation expectation saw an unusually steep dip to 4.9% from what had been a stable picture around July’s 5.3%, reaching its lowest since March 2020 on the eve of the pandemic.
Details for the headline increase showed modest gains in both the present situation and expectations, a contrast to the Michigan CSI detail where current conditions slipped but expectations increased.
The increase in the Conference Board’s present situation data came despite a less positive view on the labor market, with consumers more positive on business conditions.
