WASHINGTON (FFN) – Consumer confidence in the U.S. saw a slight improvement in August, though concerns about the future of the labor market also increased. This information comes from a report by Reuters, which published the results of a survey conducted by the Conference Board.
According to the Conference Board, the consumer confidence index reached 103.3 points in August, up from 101.9 points in July.
| Month | Consumer Confidence Index |
|---|---|
| July | 101.9 |
| August | 103.3 |
“Consumers’ assessment of the current labor market remains positive, but it has weakened, and expectations for the labor market in the future have become more pessimistic,” said Dana Peterson, Chief Economist at the Conference Board.
The percentage of consumers who viewed job availability as plentiful decreased slightly, while those finding it difficult to obtain jobs increased.
| Indicator | July 2024 | August 2024 |
|---|---|---|
| Jobs are plentiful (%) | 33.4% | 32.8% |
| Jobs are hard to get (%) | 16.3% | 16.4% |
Last week, Federal Reserve Chair Jerome Powell hinted that a reduction in interest rates might be on the horizon. He warned, however, that keeping rates high for too long could harm the labor market. Financial markets are anticipating that the Federal Reserve will begin easing monetary policy in September, potentially lowering rates by 25 basis points, though a 50 basis point cut is also a possibility.
The Fed has maintained its key interest rate in the range of 5.25% to 5.50% for over a year, having raised it by a total of 525 basis points during 2022 and 2023.
Key Words: Consumer confidence, U.S., labor market, Fed, Jerome Powell, interest rates, Conference Board.
