**U.S. Consumer Confidence Rises to Highest Level in 6 Months**
**12-Month Inflation Expectations Fall to Lowest Level Since March 2020**
U.S. consumer confidence reached its highest level in six months in August amid optimism about economic prospects. However, Americans have grown more concerned about the labor market following a spike in the unemployment rate to 4.3% last month, the highest in nearly three years.
The Conference Board’s Consumer Confidence Index posted a better-than-expected reading, reflecting improved expectations for business conditions over the next six months and indicating a continued decrease in the likelihood of a recession.
Expectations for consumer price inflation over the next 12 months fell to their lowest level since March 2020, signaling that the Federal Reserve may consider an interest rate cut in the upcoming month.
The Conference Board’s Consumer Confidence Index increased to 103.3 this month, the highest level since February, up from a revised 101.9 in July. Economists had predicted that the index would remain relatively unchanged.
Despite the overall rise in consumer confidence, there was decreased optimism regarding the labor market. The percentage of consumers who viewed jobs as “plentiful” fell to 32.8% from 33.4% in July. Additionally, about 16.4% of consumers reported that obtaining jobs was difficult, up from 16.3% the previous month.
Consumers’ inflation expectations for the next 12 months decreased to 4.9%, the lowest level since March 2020, compared to 5.3% in July’s forecast.
By/radwa sherif ✏️✏️📚