US consumer confidence shows solid rise in August - Wells Fargo

Analysts from Wells Fargo pointed out that consumer confidence rose solidly in August and said that consumers are feeling fairly positive about the economy.

Key Quotes:

“Consumer Confidence rose 4.4 points in August to 101.1 and is back near its high for this cycle. Both the present situation and expectations series increased and consumers feel more positive about the job market.”

“Consumers largely shrugged off any lingering concerns about the Brexit vote and the temporary turmoil it unleashed. The vote, which occurred after the June survey but well ahead of the July survey, weighed on expectations for future economic conditions. The stock market’s quick recovery and sustained run-up have allayed many of those fears. Moreover, back-to-back strong employment reports also show that the labor market is in better shape than many had feared.”

“Consumers feel fairly positive about the economy right now and this is evident in the consumer spending figures, which grew at a 4.4 percent annual rate during the second quarter and are off to a strong start in the current quarter.

“The expectations series also posted solid but less dramatic improvement. The proportion of consumers expecting more jobs to be created over the next six months rose 0.7 points to 14.2 percent and the share expecting fewer jobs to be created rose 0.1 point to 17.5 percent. The proportion expecting their income to increase over the next six months jumped 1.7 points to 18.8 percent, while those that expected incomes to decrease fell 0.3 points to 10.7 percent.”