Economy: Consumer Confidence Index (CCI) for August 2018

The Consumer Confidence Index® (CCI) for this month (August 2018) was released by The Conference Board® this morning:

Predicted: 126.8
Actual: 133.4

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Previous Month (revised): 127.9.

Change from Previous Month: +4.3% (+5.5 points)

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The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

From Today's Report:

"...The Conference Board Consumer Confidence Index® increased in August, following a modest increase in July. The Index now stands at 133.4 (1985=100), up from 127.9 in July. The Present Situation Index improved from 166.1 to 172.2, while the Expectations Index increased from 102.4 last month to 107.6 this month...

'Consumer confidence increased to its highest level since October 2000 (Index, 135.8), following a modest improvement in July,' said Lynn Franco, Director of Economic Indicators at The Conference Board. '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.'

Consumers’ appraisal of current conditions improved further in August. Those stating business conditions are 'good' increased from 38.1 percent to 40.3 percent, while those saying business conditions are 'bad' declined from 10.3 percent to 9.1 percent. Consumers’ appraisal of the labor market was also more favorable. Those claiming jobs are 'plentiful' was virtually unchanged at 42.7 percent, while those claiming jobs are 'hard to get' declined from 14.8 percent to 12.7 percent.

Consumers’ optimism about the short-term outlook bounced back in August. The percentage of consumers anticipating business conditions will improve over the next six months increased from 22.9 percent to 24.3 percent, but those expecting business conditions will worsen marginally rose, from 10.3 percent to 10.5 percent.

Consumers’ outlook for the labor market was mixed. The proportion expecting more jobs in the months ahead decreased from 22.6 percent to 21.7 percent, while those anticipating fewer jobs also decreased, from 15.2 percent to 14.1 percent. Regarding their short-term income prospects, the percentage of consumers expecting an improvement rose from 20.4 percent to 25.5 percent, while the proportion expecting a decrease declined, from 9.4 percent to 7.0 percent..."

Every month, The Conference Board sends a questionnaire to 5,000 U.S. households. Survey participants are polled about their feelings regarding the U.S. economy, current and future, and about their own fiscal circumstances. On average, 3,500 participants complete and return the 5-question survey.

The baseline "100" score for the CCI is associated with 1985 survey data.

When consumers feel good about the economy, they tend to do more spending, and vice versa.

Based in New York City, The Conference Board is a private, not-for-profit organization with a mission to, "create and disseminate knowledge about management and the marketplace to help businesses strengthen their performance and better serve society."

The CCI is usually released on the last Tuesday of the month.