The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
US consumer confidence rose by more than forecast in August to the highest since May, suggesting that Americans are growing more optimistic about the economy amid falling gas prices.
The Conference Board’s index increased to 103.2 from a downwardly revised 95.3 reading in July, the first increase in four months, data on Tuesday showed. The median forecast in a Bloomberg survey of economists called for a rise to 98. A measure of expectations — which reflects consumers’ six-month outlook — advanced to 75.1 while
the group’s gauge of current conditions also climbed.
The share of consumers who said jobs were “plentiful†decreased slightly to 48%. However, six months from now, more respondents expected business conditions to improve. They said they are slightly more positive about their short-term financial prospects.
Consumer confidence has taken a hit this year amid the highest inflation in a generation, which has led the Federal Reserve to pursue aggressive interest-rate hikes. Higher
borrowing costs may force consumers to reduce back
discretionary purchases and big-ticket items in particular, which would contribute to a
slowdown in economic activity.