While the economic recovery and employment situation remain questionable at best, consumers are still finding a way to feel upbeat about the economy.
The index of Consumer Confidence Index increased to 81.5 in August, compared to an upwardly revised 81 in July, according to The Conference Board, an industry group. The reading was better than expected: Economists forecast a decline to 79.1. In comparison, the index stood at 61.3 in August 2012.
Lynn Franco, director of economic indicators at The Conference Board, said in the report: “Consumer Confidence increased slightly in August, a result of improving short-term expectations. Consumers were moderately more upbeat about business, job, and earning prospects. In fact, income expectations, which had declined sharply earlier this year with the payroll tax hike, have rebounded to their highest level in two and a half years. Consumers’ assessment of current business and labor market conditions, on the other hand, was somewhat less favorable than last month.”