U.S. consumer confidence reached a six-month high in August as optimism about the economy rose, although Americans are increasingly anxious about the labor market after the unemployment rate rose last month. The better-than-expected consumer confidence reading from the Conference Board's report reflected improved perceptions of business conditions in the next six months and suggested that the odds of the U.S. economy experiencing a recession continued to decline.
FED'S ACTIONS SPOKE LOUDER THAN WORDS TO MARKETS IN FIGHT AGAINST INFLATION, RESEARCH FINDS The group's Expectations Index, which is based on consumers' short-term outlook for income, business and labor market conditions, improved to 82.5 – up from 81.1 in July and the highest level since August 2023. A reading below 80 is usually a signal of an upcoming recession and Peterson noted that the "proportion of consumers predicting a recession was stable and well below the 2023 peak.