The latest measures of confidence among American consumers show that while this central component of the U.S. economy is not immune to the uncertainty that has pervaded Wall Street in recent weeks, it has yet to suffer any real setback as of late.
The Conference Board’s Consumer Confidence Index for August showed Americans shared broadly strong views of the overall economy and their own financial health near the end of the summer, although the index was down slightly from the prior month. At 135.1, the CCI is down just 0.7 points from July’s reading, keeping the index near its highest point since November 2000. Analysts had forecast a much sharper dropoff between July and August’s CCI reading.
“While other parts of the economy may show some weakening, consumers have remained confident and willing to spend,” said Lynn Franco, senior director of economic indicators at The Conference Board. Components of the CCI like consumers’ views on income growth, job prospects and general short-term economic conditions remained broadly positive, keeping the index deep in positive territory.
This tends to bode well for industries like housing, which require large upfront investments and the confidence among consumers that present conditions will continue in the foreseeable future.
However, … Read More