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Consumer confidence nears seven-year high in August

August 26, 2014

The Conference Board consumer confidence index rose in August to a reading of 92.4 (1985=100) from 90.3 in July, aided in part by healthy job growth.

“Consumer confidence increased for the fourth consecutive month as improving business conditions and robust job growth helped boost consumers’ spirits,” said Lynn Franco, director of economic indicators at The Conference Board. “Looking ahead, consumers were marginally less optimistic about the short-term outlook compared to July, primarily due to concerns about their earnings. Overall, however, they remain quite positive about the short-term outlooks for the economy and labor market.”

The number of consumers anticipating more jobs in the months ahead fell to 17.0 percent in August from 18.7 percent in July, according to the index’s survey. However, those expecting fewer jobs also fell to 15.8 percent from 16.6 percent.

Those saying jobs are “plentiful” increased to 18.2 percent from 15.6 percent in the previous month’s survey; those claiming jobs are “hard to get” edged down to 30.6 percent from 30.9 percent.

MarketWatch reports the unexpected jump this month pushed the index to its highest level since October 2007.