The Conference Board index measuring this confidence climbed to 103.2 points.
Consumer confidence in the United States rose once more in August, following three months of decline, and even improved more than expected, but the risks linked to inflation and a potential recession persist.
The index measuring this confidence climbed to 103.2 points, according to the Conference Board index released on Tuesday, once morest 95.3 in July, according to data revised down slightly. Analysts were expecting just 97.4 points.
An index of 100 corresponds to the level of consumer confidence in 1985.
The two sub-indices are up, both the one measuring the perception of current economic conditions (145.4 points once morest 139.7 in July) and the one measuring expectations (75.1 points once morest 65.6 points).
Despite this rebound in confidence, the risks persist, warns Lynn Franco, senior director of economic indicators at the Conference Board, however, quoted in a press release.
The index measuring expectations “remains below 80 points, suggesting that recession risks remain. Inflation concerns continued to decline but remained elevated.
“Purchase intentions rose following a decline in July, and holiday intentions hit an 8-month high. Going forward, improved confidence in August might help support spending, but inflation and further rate hikes are still risks to near-term economic growth.
After hitting a 9.1% year-on-year high in more than 40 years in June, US inflation slowed in July to 8.5%, according to the price index. for CPI consumption.
The figures for August will be published on September 13, and will show whether the slowdown is confirmed.
“Despite the improvement, the level remains low compared to what it was before the pandemic. An improvement in August is a positive development. However, in terms of consumer spending, momentum should moderate as the Fed continues to raise rates in the coming months,” Rubeela Farooqi, economist for HFE, commented in a note.
The American central bank, the Fed, which is responsible for price stability, has already planned further sharp rate hikes.
The fight once morest inflation in the United States “will hurt American households and businesses” but giving it up would be even more damaging for the economy, its president, Jerome Powell, warned on Friday.
Returning to price stability “will take time” and lead to “a long period of lower growth” as well as “a slowdown in the labor market”, he said.
